SL Green is continuing on its plan to sell $2.5 billion worth of property by putting its 1350 Sixth Avenue office tower up for sale.
The REIT led by Marc Holliday is eyeing a price tag upwards of $360 million for the 600,000-square-foot building at East 55th Street, sources told The Real Deal. A deal at that price would work out to about $600 per square foot.
The building is about 80 percent occupied and is being pitched to investors looking for some upside in leasing the available space, without the risk of a large vacancy.
The availability came when Amazon relocated its offices from the building to its campus nearby headquartered in the former Lord & Taylor building.
A representative for SL Green did not immediately respond to a request for comment. Darcy Stacom of StacomCRE has the listing.
The move is part of SL Green’s plan to sell more than $2 billion worth of properties as it focuses on paying down debt amid high interest rates. The company kicked off the initiative earlier this year with a deal to sell a minority stake in the office building at 100 Park Avenue to Rockpoint at a $425 million valuation.
Other properties that will be put up for sale include a 25 percent stake in the 1.8 million-square-foot 245 Park Avenue and a 65 percent stake in 750 Third Avenue, an office building that SL Green is converting into apartments.
The tower at 1350 Sixth stands across the street from the Fisher Brothers’ 1345 Sixth Avenue, which was valued at $1.4 billion last year (about $700 per square foot) when Blackstone Group bought a 46 percent stake in the 2 million-square-foot building.
Sixth Avenue is benefiting from demand that’s spilling over from Park Avenue, though still recovering from a glut of available space. The availability rate on Sixth Avenue was just shy of 17 percent at the end of last year, according to Cushman & Wakefield.
That’s better than the 20 percent rate along Fifth and Madison Avenues and the nearly 30 percent availability on the West Side. Park Avenue, by comparison, had an availability rate near 10 percent.
SL Green also sold a retail building at 690 Madison Avenue, along with partner Jeff Sutton, to an unidentified buyer for $54.5 million.
The nearly 8,000-square-foot building is leased to the French luxury jewelry company Van Cleef & Arpels.
Eastdil Secured’s Gary Phillips and Will Silverman brokered the sale.
Sutton’s Wharton Properties bought a 50-percent stake in the property for $34 million in 2014.
Read more
SL Green eyes $2.5B in property sales
Amazon set for massive Manhattan space expansion
Jeff Sutton picks up stake in former Hermes store on Madison Avenue
