SL Inexperienced obtained the ball rolling with its plan to promote $2.5 billion price of property.
The REIT offered a minority stake within the workplace constructing at 100 Park Avenue to Rockpoint at a $425 million valuation, The Actual Deal has realized.
The Marc Holliday-led firm purchased a 49 percent stake within the 900,000-square-foot constructing from its associate Prudential in December 2024, at a $360 million valuation, after which injected a few of its personal fairness into the property earlier than flipping the curiosity to Rockpoint earlier than the beginning of the brand new 12 months.
The Nineteen Forties-era workplace constructing simply south of Grand Central is sort of totally leased at 95 p.c occupancy, and each companions will pony up extra cash to cowl leasing prices. SL Inexperienced not too long ago signed the restructuring and turnaround agency Alvarez & Marsal to 220,000 square feet on the constructing, and the prices associated to that lease are beginning to kick in.
As soon as all the brand new capital is accounted for, the property is anticipated to be valued at a foundation of $500 million.
Representatives for SL Inexperienced and Rockpoint didn’t instantly reply to requests for remark. A Newmark crew led by Adam Spies organized the sale.
The deal is the newest signal of energy for Manhattan’s workplace market, which for 2025 is anticipated to document its greatest 12 months since 2019 as firms introduced their staff again to the workplace in full drive.
SL Inexperienced has taken discover of the demand; at its investor convention final month the corporate mentioned it plans to promote $2.5 billion price of property, partly to assist offset larger rates of interest.
The REIT is “promoting belongings [and] shedding [income] to struggle in opposition to rates of interest which can be too excessive,” Chief Monetary Officer Matthew DiLiberto mentioned on the convention.
SL Inexperienced additionally intends to be busy on the purchase aspect, with about $1 billion price of acquisitions deliberate for 2026.
Boston-based Rockwell, led by co-CEOs Tom Gilbane and Aric Shalev, not too long ago inked a deal to promote its 50-story One Dag Hammarskjöld Plaza tower to David Werner for $270 million.
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