SL Green’s Park Ave tower stake drew interest from several investors -source
5:14 pm Wednesday, June 28th, 2023
By Matt Tracy
(Reuters) – SL Green Realty Corp drew interest from several investors, including from the Middle East and Asia, for its 245 Park Ave office tower in Manhattan before striking a deal with Japanese real estate developer Mori Trust, a source familiar with the matter said.
As part of the deal, which assigns the property a gross value of $2 billion, SL Green is selling Mori $500 million in mezzanine debt, the source said. Mori paid cash for its nearly 50% stake, the source said.
SL Green has leased over 86,000 square feet of space in the last 30 days, said the source. Demand has increased for Grand Central and other pockets of New York near commuter hubs, as many finance companies have shifted to hybrid work models, the source added.
The $2 billion valuation is a small premium to the $1.96 billion SL Green paid when it bought the property from HNA Group in September 2022, the source said.
Mori could not be reached for comment.
(Reporting by Matt Tracy; editing by Megan Davies and Richard Chang)
