Commercial property

SL Green JV closes $445 million purchase of Manhattan Tower

Two foreign investors joined the company in its acquisition of the Midtown property.

450 Park Ave. Image via Google Street View

SL Green Realty Corp.. is just in time as he reveals he has completed the acquisition of 450 Park Ave. in Midtown Manhattan just days before the previously announced deadline of the end of the second quarter of 2022.

The company revealed two months ago in April that it would buy the first 337,000 square foot office and retail building in Oxford Properties for $445 million. And as SL Green predicted at the time, the company had no problem finding joint venture partners to help capitalize the deal.

SL Green has completed the purchase of 450 Park, a Emery Roth & Sons-an architectural monument designed with pride of place on one of the most prestigious stretches in the world, in a joint venture with unidentified institutional investors from South Korea and Israel.

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Harrison Sitomer, chief investment officer of SL Green, noted in a prepared statement that the international partnership request for the acquisition of 450 Park demonstrates that New York City continues to maintain its position as one of the fastest growing real estate markets. sought after and a haven for the deployment of long-term capital.

As the global investment community focuses on high-quality assets, according to CommercialEdge, Manhattan saw more than $1 billion in office sales in the first quarter of 2022. York, the Bay Area and Washington, D.C. » , according to a May 2022 research paper by Marcus & Millichap. “[In the last 12 months] sales hit the highest level since at least 2018 for office buildings in Chicago, New York and Los Angeles.

Shiny new toy

The partners relied on a $267 million first mortgage through a consortium of financial institutions led by Wells Fargo Bank North America to fund the purchase of the 33-story luxury office tower.

With the purchase of 450 Park, SL Green adds an office property to its portfolio for the first time since 2018. The REIT owns a 25.1% interest in the asset and will assume leasing and management responsibilities on behalf of the partnership. SL Green will also lead a new property capital investment program, which will involve the development of a new amenity offering that will provide tenants with high quality, tailored programs and services. Among those who will benefit from these services will be Oxford Properties, which is among the list of notable tenants at 450 Park.