SL Green Makes Big Moves in Buying, Developing, Leasing

SL Green Realty Corp. had big news Monday on the acquisition, development and leasing fronts in Midtown East and West, as well as Downtown.

The REIT will pay $440 million for a majority stake in 460 W. 34th St., marking its first major investment in the Hudson Yards district. It plans to reposition the 20-story office property.

Across town, SL Green has refinanced construction of One Vanderbilt (pictured), with a $1.75-billion facility replacing one for $1.5 billion and shaving 75 basis points off the interest rate. In announcing the more favorable loan terms, the REIT credited the accelerated pace of construction and leasing for what will be Manhattan’s fourth tallest building when completed in 2020.

Among the recent deals that brought One Vanderbilt to 52% pre-leased was a 119,000-square-foot lease by TD Securities, which is also taking 52,450 square feet at SL Green’s nearby 125 Park Ave. SL Green will also establish its headquarters at the new property, moving from the Greybar Building into 70,000 square feet at One Vanderbilt.

In Midtown South, SL Green will undertake a major redevelopment of One Madison Ave., with work getting underway in 2020. The project will entail dismantling the 1.1-million-square-foot property above its ninth floor, and replacing the existing upper floors with a Kohn Pederson Fox-designed addition that will increase its square footage to 1.5 million square feet.

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