SL Green Announces Sale Of Tower 45, Joint Venture Of SoHo Property

(RTTNews) - SL Green Realty Corp. (SLG) announced the sale of Tower 45 and the joint venture of SoHo property. The aggregate value for both transactions amounted to $642.8 million. Both transactions are expected to be completed in the third quarter.

The company agreed to sell Tower 45, the office building located at 120 West 45th Street, for $365.0 million, or approximately $830 per square foot; and the formation of a joint venture with Invesco Real Estate for the ownership of 131-137 Spring Street, a 73,000 square foot mixed-use asset located in SoHo.

As per agreement terms, Invesco will acquire an 80 percent stake in the property, with SL Green retaining a 20 percent ownership interest as well as management and leasing responsibilities. The transaction values the property at $277.8 million.

The 440,000-square-foot Tower 45 was acquired by SL Green in 2007 as part of the merger with Reckson Associates. Subsequently, the company executed a significant capital improvement program that successfully repositioned the property. Tower 45 is currently 96.2% leased. Richard Baxter of Jones Lang LaSalle and Darcy Stacom of CBRE represented SL Green on this transaction.

131-137 Spring Street, a six-story building in the heart of the popular SoHo shopping district, features 100 feet of ground floor frontage on Spring Street and houses the multi-level flagship stores for Diesel and Burberry while the balance of the building includes office space and residential rental units.