SL Green Looking to Dump Stake in 521 Fifth Ave.
REIT bigwigs SL Green (SLG) have reportedly hired Eastdil Secured to help them dump a stake —from about 49 percent to 80 percent — in 521 Fifth Avenue, a 39-story officer tower, the NY Post’s Lois Weiss reports.
The investment trust has tapped Eastdil’s Douglas Harmon and Adam Spies to help them shed their stake in the 400,000-plus square foot building located on 43rd street, which last year signed international IT staffing firm Modis, Inc. to a 10-year lease for the entire fourth floor sized at 21,677 square feet.
SL Green purchased the building from an ownership group led by RFR Holding LLC for $225 million in 2006.
SL Green CEO Marc Holliday said in a statement at the time of the purchase: “The company’s interest in this property should continue the trend of redeploying the company’s capital gains into properties that offer greater long term growth opportunities.”
The company has since spent $30 million in capital improvements to the building, including a new lobby, elevators, halls, bathrooms, security, and other upgrades. Health club Equinox and trendy retailer Urban Outfitter currently take up the 60,000 square feet of retail in the building.
Ms. Weiss wagers that the sale could be for mucho money:
Because of its location, in-place cash flow — city estimates show net operating income at $11,473,513 — and worldwide focus on city properties, the investment stake in 521 Fifth is expected to sell closer to $650 to $700 per square foot.
Last week, Mssrs. Harmon and Spies recently helped Paramount Group finalize its repurchase of Investa Office’s 49 percent stake in 900 Third Avenue for $172.7 million.
Staff writer Daniel Edward Rosen can be reached at firstname.lastname@example.org or followed on Twitter @dedwardro