SL Green Closes on $148M Pref Equity Investment in HNA’s 245 Park

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SL Green Realty Corp. has closed on the second phase of its preferred equity investment in 245 Park Avenue, the landlord announced this morning. After making its first investment during the second quarter of 2018, this next round brings its investment to $148.2 million.

SEE ALSO: SL Gravy: NYC’s Largest Office Landlord Meets 2018 Leasing Goal With Months to Spare

The New York Post first reported news of the closing. 

Commercial Observer reported in June that SL Green was in the process of closing on an ownership interest in the asset, which HNA purchased in 2017 for $2.2 billion.

The landlord will now serve as the 1.8-million-square-foot trophy asset’s property manager, overseeing all leasing and operations.

“SL Green has an unparalleled track record in managing top commercial assets throughout New York City, with a particular emphasis on East Midtown, attracting world-renowned firms and offering best-in-class building management,” Daniel Chen, the chairman and CEO of HNA Group subsidiary HNA Group North America, said. “We are thrilled to partner with them at 245 Park Avenue, which stands at the center of Manhattan’s most prominent office corridor.”

Eastdil Secured’s Benjamin Lambert, Evan Layne, and David Lazarus represented HNA on the transactions.

The property was erected in 1967 and designed by Shreve, Lamb & Harmon Associates occupies the entire block between 46th and 47th Streets. It is currently  91 percent leased to a tenant base that includes Société Générale, Angelo Gordon, Rabobank and Ares Capital.