SL Green Realty Corp. had a busy day on Monday, announcing three sales across Manhattan with a combined value of nearly $420 million while also executing a headquarters expansion with Bloomberg LP.  

In the largest of the three sales transactions, the REIT sold a 25% interest in the under-construction One Madison Ave. in Midtown South to an undisclosed international investor for at least $259.3 million. SL Green retained a 25.5% interest in the property, while its joint venture partners, the National Pension Service of Korea and Hines, retained their 49.5 % interest.  

The $2.3-billion office and retail tower is being co-developed by SL Green and Hines. This transaction follows the successful signing of Chelsea Piers Fitness in October as the flagship retail tenant. 

“New York City’s investment market remains resilient and the One Madison Avenue transaction demonstrates the strong appetite by institutional investors for trophy assets located in prime sub-markets,” said Marc Holliday, chairman and CEO of SL Green. 

In Midtown, SL Green sold its ownership interest in the office and garage condominiums at 110 E. 42nd St. for a gross sale price of $117.075 million to Meadow Partners, which is acquiring the property on behalf of a separately managed account. The transaction is expected to close by the end of 2021. 

“We continue to see demand for well-located assets near transportation in Midtown and across the Manhattan,” said SL Green SVP Harrison Sitomer. “Completion of this transaction at an attractive cap rate represents another successful execution in our ongoing strategy to divest of non-core assets and accretively reinvest the capital into our deeply discounted stock.” 

SL Green previously sold the office condo in 2007 and assumed control of it again in 2011. The garage condo was acquired in 2013. 

On Manhattan’s Upper West Side, SL Green and JV partner Stonehenge sold the leasehold interest in 1080 Amsterdam Ave., a 20-story pre-war elevator building just south of Columbia University’s campus, to an undisclosed buyer. The property is comprised of 96 apartments and two commercial units, and recently underwent a complete redevelopment program. 

An Ackman-Ziff team including Marc Sznajderman, Andrew Sasson, Chad Sinsheimer, and Justin Bomba advised SL Green in the 1080 Amsterdam sale. 

Bloomberg Expands its Headquarters Again

On the leasing front, SL Green secured a 191,207-square-foot expansion lease with Bloomberg LP at 919 Third Ave. The financial, software, data and media company now occupies 748,415 square feet at the Midtown office tower. 

“This expansion is a testament to the resiliency of New York’s office market and the desirability of Class A office space for companies to promote creativity and collaboration,” said Steven Durels, director of leasing and real property at SL Green. It’s the second expansion for Bloomberg at the property. 

The REIT also signed a new 19,522-square-foot lease with Flexpoint Ford, a private equity firm with a history of investing in the financial services and healthcare sectors, and a 6,554-square-foot expansion with Stone Point Capital, both at the recently opened One Vanderbilt office tower. One Vanderbilt is now 92.7% leased. 

CBRE’s Craig Reicher and Howard Fiddle represented Bloomberg. Newmark’s Jared Horowitz represented Flexpoint Ford and CBRE’s John Maher and Hugh MacDonald represented Stone Point Capital. Robert Alexander, Ryan Alexander, Emily Chabrier and Alex D’Amario of CBRE represented the landlord in each transaction.