SL Green and Ivanhoé Cambridge Selling Midtown Office Condo for $633M to Invesco
SL Green Realty Corp. and partner Ivanhoé Cambridge are in contract to sell the leasehold of a 674,000-square-foot office condominium at 1745 Broadway in Midtown to a “client of Invesco Real Estate (IVZ)” for $633 million, SL Green (SLG) announced today.
The sale, which breaks down to $939 per square foot, is expected to close in the second quarter of the year. The building is an entire block front between West 55th and West 56th Streets and is 100 percent leased, according to an SL Green release.
“After securing a long-term lease and extension with investment grade tenant [Penguin] Random House and stabilizing the asset, we determined that this was the right time to monetize our success with the property and redeploy that capital into more accretive investment opportunities, including our share repurchase program,” SL Green Co-Chief Investment Officer David Schonbraun said in prepared remarks.
Eastdil Secured represented SL Green and Ivanhoé in the 1745 Broadway transaction. A spokeswoman for Invesco did not immediately return a request for comment.
Publisher Penguin Random House completed an early 15-year renewal at 1745 Broadway for 603,605 square feet in September 2016, as Commercial Observer reported at the time. The renewal was part of an effort by the company to bring all of its employees into the same space. It occupies the second through 19th and 21st to 23rd floors until 2033.
Related Companies built the Skidmore, Owings & Merrill-designed 1754 Broadway in 2003. The 50-story tower’s upper half has residential condominiums. Witkoff Group and Ivanhoé bought the office condo in 2006 for $508 million, as The Real Deal previously reported. SL Green started investing in the office condo in 2007 and bought out Witkoff group in 2014.