SL Green Sells 49.9% Interest in 245 Park Avenue  

SL Green, the largest office landlord in NYC, has sold a 49.9% interest in 245 Park Avenue to Mori Trust. The 1.8-million-square-foot office tower has a gross asset valuation of $2.0 billion.

The partnership reflects the appeal of investing in prestigious midtown NY assets and the resilience of Park Avenue as a desirable office market. SL Green acquired the 1.8 million-square-foot office property in September 2022 and plans to reposition it with a partner.  

The building will undergo a redesign by Kohn Pedersen Fox Associates, focusing on a new façade, windows, lobby improvements, retail enhancements, and infrastructure upgrades. The sale of the joint venture interest is a key part of SL Green’s 2023 financial plan, following the refinancing of 919 Third Avenue for $500 million in April. 

“We are seeing strong demand from tenants and investors for high quality, amenitized office properties located in highly commutable areas,” said Harrison Sitomer, chief investment officer of SL Green. The firm acquired 245 Park Avenue back in 2022. SL Green’s stock had a significant turnaround on the day of the announcement, closing the session with a one-day percentage gain of 19.7% at $28.20, marketing its largest single-day percentage gain since Nov. 9, 2020, reported by Reuters.