SL Green’s 609 Fifth Retail Condo Sells For $168M in All-Cash Deal
The transaction's closing sends a positive message to the market, sources said.
This may be a Memorial Day weekend quite unlike any other, but SL Green (SLG) Realty Corp. has some positive news to celebrate.
The landlord closed on the $168 million sale of its retail condominium at 609 Fifth Avenue to an affiliate of Reuben Brothers this afternoon in an all-cash deal, sources close to the transaction told Commercial Observer.
The deal launched on March 11 — right at the onset of the COVID-19 pandemic in New York City. It received significant buyer interest and closed without re-trading, sending a powerful statement of positive market sentiment, sources said.
CBRE (CBRE)’s Darcy Stacom, Doug Middleton and David Fowler led the sale on behalf of SL Green. A representative for CBRE declined to comment.
Adding further support to Reuben’s confidence in the property, the deal went ahead despite the fact that luxury apparel brand Vince — which occupies 5,000 square feet on the ground floor — didn’t pay rent in April or May, sources said. Vince also has a lease termination option in year five if the retailer’s sales don’t meet specific thresholds, sources noted.
German sportswear retailer Puma has a 24,000-square-foot, three-floor flagship store in the space, and is up to date on its rent.
CO first reported in early April that SL Green was “quietly marketing” the 29,000-square-foot retail condo, which sits at the corner of Fifth Avenue and East 49th Street, and SL Green announced it had formally entered into a contract to sell the asset on May 4.
“The sale of the 609 Fifth Avenue retail condominium is indicative of our ability to drive value even during uncertain market conditions,” Brett Herschenfeld, SL Green’s managing director, said in prepared remarks at the time. “We will continue to look for opportunities that bring value to our shareholders as we strategically transact in the current economic climate.”
“This deal sends a really powerful message to the market,” one source said. “For a retail deal to launch, price and close without re-trading in this environment is very good news.”