SL Green Sells 50% Stake In 'Trophy Midtown Manhattan' Property At A $2B Valuation

SL Green Realty Corp SLG sold a 49.9% stake in 245 Park Avenue in New York City to Mori Trust Co., Ltd. at a gross asset valuation of $2 billion.

The sale of a joint venture interest in 245 Park Avenue is the largest component of the company's financial plan for 2023, following the successful $500 million refinancing of 919 Third Avenue in April.

SL Green acquired the 1.8 million-square-foot property in September 2022.

"The formation of this new partnership with Mori Trust reflects the continuing allure of investing in trophy midtown [New York] assets and resilience of the Park Avenue corridor as New York's most desirable office market," said SL Green chief investment officer Harrison Sitomer.

As of March 31, 2023, SL Green held interests in 60 buildings totaling 33.1 million square feet, which included ownership interests in 28.8 million square feet of Manhattan buildings.

Sitomer cited high demand from tenants and investors for "high quality, amenitized office properties." This is Mori Trust's first investment in New York City.

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Price Action: SLG shares are trading higher by 10.3% to $25.97 on the last check Monday.