Japanese Firm Mori Trust Buys Minority Stake in 245 Park as First NYC Investment
By Mark Hallum June 26, 2023 12:31 pm
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SL Green (SLG) Realty is selling a 49.9 percent stake in 245 Park Avenue to a Japanese firm at a $2 billion valuation, with slated renovations to the ground- level components of the office building.
After acquiring the property in September 2022, SL Green’s first intention had been to reposition the 1.8 million-square-foot property with the help of a joint venture partner, which it found in Mori Trust, according to the office landlord.
The sale was first reported by The Real Deal.
The majority of Mori Trust’s development projects and acquisitions have been in Japan with the occasional investment in U.S. markets such as Silicon Valley, Boston and Washington, D.C. This looks like Mori’s first investment in New York City real estate.
“This transaction further validates our continued confidence in high quality, transit-oriented New York City office product, which continues to attract global debt and equity investors. We have been in dialogue with Mori Trust for several years now and we are thrilled to have them on board for SL Green’s next major project and partnership,” Young Hahn, senior vice president at SL Green said in a statement. “245 Park Avenue experienced strong investor demand and continue to see a focus on prime quality assets in New York City.”
Mori Trust did not immediately respond to a request for comment. It’s unclear who brokered the deal.
245 Park Avenue stretches the full block between East 46th and 47th streets. SL Green bought a minority stake in the building from HNA Group for $148 million in 2018, but relations between the two partners later deteriorated. After a protracted legal battle, HNA Group gave SL Green back $185 million in a bankruptcy settlement, and SL Green took sole control of the property.
Since taking it over, SL Green retained Kohn Pedersen Fox for the renovations to the lobby, entrances and retail spaces. It also plans to add new amenity spaces, food offerings from Daniel Boulud and a new rooftop garden.
Mark Hallum can be reached at mhallum@commercialobserver.com.
