SL Green Selling Chelsea Building to Brookfield for $446.5M

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SL Green Realty Corp. has agreed to sell 315 West 33rd Street, its 493,000-square-foot mixed-use building in Chelsea, to an affiliate of Brookfield Asset Management for $446.5 million, SL Green announced today.

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The sale of the 36-story property — also known as The Olivia — is expected to close in the second quarter of this year and includes an adjacent piece of undeveloped land, according to SL Green. 

The building includes 333 residential units and 270,132-square-feet of commercial space leased to tenants like Music Choice, Landmark Education and AMC Theater. SL Green picked up the property between Eighth and Ninth Avenues for $386 million in 2013, according to the developer. 

The sale will help fund SL Green’s stock buyback program. 

“This sale is another example of SL Green’s commitment to strategically divest of non-core assets and accretively redeploy the capital into our ongoing share repurchase program,” David Schonbraun, a co-chief investment officer at SL Green, said in a statement. “The transaction also serves to demonstrate the continued strong demand for high-quality Manhattan assets.”

A spokesman for Brookfield declined to comment.

CBRE’s Darcy Stacom represented SL Green in the sale. A spokeswoman for CBRE did not immediately respond to a request for comment.

SL Green has been selling off several of its buildings in recent months in order to buy back shares of its stock that’s “trading at a heavily discounted basis,” CEO Marc Holliday said in a fourth-quarter earnings call last year.

In March 2019, SL Green announced the sale of 521 Fifth Avenue to Savanna for $381 million and that October announced plans to offload the News Building at 220 East 42nd Street to Jacob Chetrit for $815 million, as Commercial Observer previously reported.