SL Green Announces Acquisition of 450 Park Avenue

Rhea-AI Summary

SL Green Realty Corp. (NYSE: SLG) announced its acquisition of 450 Park Avenue for $445 million from Oxford Properties. The purchase, which is anticipated to close in the second quarter, marks SL Green's first office acquisition since 2018. This 33-story Class A tower occupies a prime location at 57th Street and Park Avenue, offering 337,000 square feet of luxury office and retail space. The acquisition is seen as a strategic move to enhance SL Green’s portfolio amid increasing demand for high-quality office spaces.

Positive

• Acquisition of 450 Park Avenue enhances SL Green's portfolio.
• Strategically located in a high-demand East Midtown area.
• Expected interest from joint venture partners to capitalize on the deal.

Negative

• None.

Trophy Asset in Resurging East Midtown Enhances NYC’s Largest Office Portfolio as Demand for High Quality Office Space Increases

NEW YORK, April 20, 2022 (GLOBE NEWSWIRE) -- SL Green Realty Corp. (NYSE: SLG), Manhattan’s largest office landlord, today announced that it has entered into a contract to purchase 450 Park Avenue for $445.0 million from Oxford Properties. The transaction is expected to close in the second quarter, subject to customary closing conditions.

Ideally located at the prestigious corner of 57th Street and Park Avenue, 450 Park Avenue is a prominent 33-story Class A tower designed by Emery Roth & Sons, totaling 337,000 square feet of luxury office and prime retail space. Offering sweeping views of the Midtown Manhattan skyline, the property is home to several high-end boutique financial services and luxury tenants, including Banco Bradesco, BDT Capital Partners and Oxford Properties. In addition, the coveted corner retail location will soon be home to Aston Martin’s first ever Manhattan showroom. As part of its planned capital investment plan, SL Green will develop a new amenity offering, providing high-quality, tailored programs and services for building tenants.

“Our investment in 450 Park Avenue represents the ideal asset for our first office acquisition since 2018 and further demonstrates our conviction in the vibrant East Midtown office corridor. As the most recognizable thoroughfare in East Midtown, Park Avenue continues to attract top tier tenants and triple-digit rents,” said Harrison Sitomer, Chief Investment Officer of SL Green. “Given the domestic and international appeal for blue chip assets like this one, we expect significant interest from joint venture partners who will capitalize this deal with us as we grow our investment management platform.”

Darcy Stacom, William Shanahan and Doug Middleton of CBRE advised on the transaction.

About SL Green Realty Corp.

SL Green Realty Corp., Manhattan's largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of March 31, 2022, SL Green held interests in 72 buildings totaling 34.7 million square feet. This included ownership interests in 26.7 million square feet of Manhattan buildings and 7.2 million square feet securing debt and preferred equity investments.

Forward Looking Statement

This press release includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, are forward-looking statements. Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially, and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “project,” “continue,” or the negative of these words, or other similar words or terms.

Forward-looking statements contained in this press release are subject to a number of risks and uncertainties, many of which are beyond our control, that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. Factors and risks to our business that could cause actual results to differ from those contained in the forward-looking statements include risks and uncertainties related to the on-going COVID-19 pandemic and the duration and impact it will have on our business and the industry as a whole and the other risks and uncertainties described in our filings with the Securities and Exchange Commission. Except to the extent required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.

SLG - A&D

PRESS CONTACT
slgreen@berlinrosen.com

FAQ

What is the recent acquisition by SL Green Realty Corp. (SLG)?

SL Green Realty Corp. has entered into a contract to purchase 450 Park Avenue for $445 million from Oxford Properties.

When is SL Green's acquisition of 450 Park Avenue expected to close?

The acquisition is expected to close in the second quarter of 2022, subject to customary closing conditions.

What are the features of 450 Park Avenue that SL Green is acquiring?

450 Park Avenue is a 33-story Class A tower with 337,000 square feet of luxury office and prime retail space.

How does the acquisition of 450 Park Avenue impact SL Green's portfolio?

The acquisition enhances SL Green's presence in the East Midtown area, which is seeing increased demand for high-quality office spaces.