Sale values trophy asset at $1.950 billion, signaling healthy
outlook for Times Square and institutional investment in New York City
NEW YORK–(BUSINESS WIRE)–
SL Green Realty Corp. (NYSE: SLG), New York City’s largest commercial
property owner, announced today that it has entered into a contract to
sell a 43% interest in 1515 Broadway to affiliates of Allianz Real
Estate, the real estate investment and asset manager within the Allianz
Group. The transaction values the 1.86 million-square-foot, Class-A
Times Square office building at $1.950 billion, or $1,045 per square
foot. Approximately 70% of the transaction is expected to close on
November 30, 2017. The balance of the transaction is scheduled to close
in the first quarter of 2018.
SL Green will realize cash proceeds, following the final closing, of
approximately $416 million.
SL Green’s Co-Chief Investment Officer, Isaac Zion, commented “1515
Broadway has been an extraordinary investment for SL Green and we are
delighted to collaborate with our new joint venture partner, Allianz, in
one of New York City’s truly special buildings.” He continued, “We look
forward to a long-term, mutually beneficial relationship with Allianz on
1515 Broadway and to future investment opportunities together.”
SL Green’s President, Andrew Mathias, added “This transaction speaks to
the continued strong interest from overseas investors in New York City
office assets as well as the strength of the Times Square office and
Allianz Real Estate of America’s Chief Executive Officer, Christoph
Donner, added “Allianz’s investment in 1515 Broadway represents a unique
and exciting opportunity to partner with SL Green and add an attractive
trophy asset, with significant upside in the coming years, to our
growing portfolio in New York City”.
SL Green purchased 1515 Broadway as part of a joint venture in 2002 and
acquired full control of the building in 2011. In 2012, following a
comprehensive redevelopment of the property that included the
re-positioning of all retail space, a new lobby, new elevators,
revitalized building systems along with new state-of-the-art signage,
Viacom signed a long-term lease renewal and will occupy the building’s
office space through 2031.
1515 Broadway is located in the heart of the “bow tie” of New York’s
Times Square between 44th and 45th street. The
57-story building is currently 98% leased and is home to retail tenants
Skechers, Swatch, Oakley, Kiko Milano, and Line Friends along with the
Minskoff Theater, one of the city’s largest live performance theaters
and host to The Lion King – the highest grossing show on Broadway.
Doug Harmon and Adam Spies of Cushman and Wakefield represented SL Green
in this transaction.
About SL Green Realty Corp.
SL Green Realty Corp., an S&P 500 company and New York City’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 September 30, 2017, SL
Green held interests in 118 Manhattan buildings totaling 47.8 million
square feet. This included ownership interests in 27.5 million square
feet of Manhattan buildings and debt and preferred equity investments
secured by 20.3 million square feet of buildings. In addition, SL Green
held ownership interests in 27 suburban buildings totaling 4.3 million
square feet in Brooklyn, Long Island, Westchester
County, Connecticut and New Jersey. To be added to the Company’s
distribution list or to obtain the latest news releases and other
Company information, please visit our website at www.slgreen.com or
contact Investor Relations at (212) 594-2700.
About Allianz Real Estate
Allianz Real Estate is the strategic center of expertise in real estate
within the Allianz Group and a leading international real estate
investment and asset manager. Allianz Real Estate develops and executes
worldwide tailored portfolio and investment strategies on behalf of the
Allianz companies, considering direct as well as indirect investments
and real estate loans. The operational management of investments and
assets is currently performed in seven international subsidiaries and
hubs in Germany, France, Switzerland, Italy, Spain, USA and Singapore.
The headquarters of Allianz Real Estate are located in Munich and Paris.
Allianz Real Estate has approximately 53 billion euros in assets under
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Chief Financial Officer
Green Realty Corp.
Source: SL Green Realty Corp.
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