SL Green To Sell Chelsea Office Building For $325M
SL Green is offloading another one of its Manhattan office buildings.
The real estate investment trust announced Tuesday it has agreed to sell the 635-641 Sixth Ave. property in Chelsea for $325M. Spear Street Capital, based in San Francisco, is set to purchase the 267K SF Class-A office building, Commercial Observer reported shortly after the announcement. The transaction is expected to close by the end of the quarter.
“New York City’s revitalization continues as does the demand for Class-A office buildings,” SL Green Senior Vice President Harrison Sitomer said in a statement. “The disposition at a sale price of more than $1,200 per square foot is a result of extensive repositioning and leasing efforts at the property.”
SL Green purchased the two Midtown South properties in 2012 for $173M, CO reported at the time. Since then, the company has redeveloped them into a Class-A office project, which is 94% occupied and counts Microsoft and EvensonBest as its tenants. There is a Staples on the ground floor. Cloud software company Infor just renewed its 90K SF lease there.
This is the latest office building that SL Green has sold since the coronavirus pandemic began. It also sold 410 10th Ave. for $952.5M late last year, which helped the REIT bolster its profit margin during the final quarter of a year that was otherwise tumultuous for SL Green and other Manhattan landlords. It also sold its retail property at 712 Madison Ave.
