SL Green (SLG) to Acquire Midtown Manhattan Office Building in $252.5M Deal
SL Green Realty Corp. (NYSE: SLG), has entered into an agreement to acquire 10 East 53rd St., a 37-story, 390,000-square-foot Midtown Manhattan office building. The purchase price is $252.5 million, or approximately $647 per square foot.
The property, with floor plates ranging between 8,400 and 16,300 rentable square feet, is currently 91 percent leased. Over the next three years, leases for approximately 60 percent of the property’s rentable square footage expire, providing SL Green the opportunity to take advantage of what SL Green management believes are in-place rents that are substantially below market.
SL Green intends to implement a significant capital improvement program along with a targeted leasing and marketing campaign to reposition and reintroduce the building in the marketplace. The Company has entered into a joint venture agreement with an institutional partner, and will hold a 55% stake in the venture and act as general partner.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
The property, with floor plates ranging between 8,400 and 16,300 rentable square feet, is currently 91 percent leased. Over the next three years, leases for approximately 60 percent of the property’s rentable square footage expire, providing SL Green the opportunity to take advantage of what SL Green management believes are in-place rents that are substantially below market.
SL Green intends to implement a significant capital improvement program along with a targeted leasing and marketing campaign to reposition and reintroduce the building in the marketplace. The Company has entered into a joint venture agreement with an institutional partner, and will hold a 55% stake in the venture and act as general partner.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
You May Also Be Interested In
- UPDATE: SAP's (SAP) America Unit to Buy Ariba (ARBA) for $45/Share
- Dollar Thrifty (DTG) Shares Spike Higher as Hertz (HTZ) Could Make an Offer
- UPDATE: RR Donnelley (RRD) to Buy Edgar Online (EDGR) for $70.5M
Create E-mail Alert Related Categories
Mergers and AcquisitionsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
