SL Green Sells Stake in Tower 46 to Brookfield Asset Management for $275M
By Nicholas Rizzi February 16, 2021 4:25 pm
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SL Green Realty Corp. agreed to sell its 25 percent stake in office building Tower 46 to Brookfield Asset Management for $275 million, SL Green announced Tuesday.
The deal, set to close during the first quarter of this year, covers the commercial condominium units on the second and 22nd to 24th floors, along with a retail space in the Midtown building at 55 West 46th Street.
“The sale of our interest in Tower 46 is another step in our strategy to divest of non-core assets and accretively reinvest the capital into our share repurchase program,” David Schonbraun, SL Green’s chief investment officer, said in a statement. “The transaction also serves to further demonstrate the resiliency of the Manhattan office market and the continued demand by institutional investors for well-located, Class A real estate assets in Midtown.”
SL Green bought Tower 46 — a building within Extell Development’s 34-story, residential 55 West 46th — with Prudential Real Estate Investors for $295 million in 2014, The New York Post reported. Tenants include financial services firm XP Securities, law firm Nixon Peabody and Comcast.
SL Green has been offloading properties around the city recently to help buy back stock and provide it with funds to survive an economic downturn.
Last year, SL Green sold the luxury apartment building 400 East 58th Street for $62 million, the retail condo at 609 Fifth Avenue for $168 million, and the Amazon-anchored 410 Tenth Avenue for $952.5 million. It also sold the mixed-use 315 West 33rd Street to an affiliate of Brookfield for $446.5 million.
Paul Gillen, Anthony Ledesma and Kyle van Buitenen of Hodges Ward Elliott represented SL Green in the Tower 46 sale.
“Tower 46 is well-positioned for today’s environment as a recently constructed, centrally located office building in Midtown,” Ben Brown, a managing partner at Brookfield, said in a statement. “This transaction represents an opportunity to acquire a prime asset at a highly attractive basis and drive return through Brookfield’s operating platform.”
