SL Green Nabbing Stake in 245 Park Avenue
Real estate giant pays less than HNA did when it purchased the building last year
By Cathy Cunningham and Max Gross June 23, 2018 5:59 pm
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SL Green Realty Corp. is in the process of closing on one of the top prizes in New York real estate, 245 Park Avenue which HNA purchased last year for $2.2 billion.
HNA is remaining a partial owner of the 1.7-million-square-foot property. By press time, Commercial Observer could not ascertain how big a percentage of the ownership SL Green was acquiring.
Sources close to the deal said that SL Green now has a “preferred position” in the asset.
While the exact final figures are still unknown, sources have said that the purchase price for SL Green’s position will be less than the $1,282 per square foot that HNA paid back in 2017, according to Bloomberg.
This is another instance of a significant Chinese company taking a step away from the New York real estate market, which has seen a significant retreat in the last year.
SL Green was the mezzanine lender to HNA when the last round of financing closed, making the firm always a likely candidate to acquire the property.
SL Green declined to comment; HNA could not be reached by press time.
A source close to the deal said final terms of the deal were, as of now, still being ironed out as the deal was “beyond complex.” But SL Green has apparently shed numerous assets to make this purchase possible.
