SL Green is offloading one of its Midtown office towers for north of $300 million — the latest move in the REIT’s plan to sell more than $2 billion worth of property.
The Marc Holliday-led company has struck a deal to sell 10 East 53rd Street to Meadow Partners for $312 million, The Real Deal has learned.
The 37-story, 390,000-square-foot building is about 90 percent occupied, with tenants including Compass and ISDA, the International Swaps and Derivatives Association.
The deal works out to about $800 per square foot and the capitalization rate is in the mid-5 percent range, making it one of the largest office building sales so far this year. Investor demand for Class A office space is picking up after Manhattan saw its strongest year of office leasing last year since 2019 — though interest rates that have been climbing since the start of the Iran War in late February could threaten the market’s recovery.
Representatives for SL Green and Meadow Partners could not be immediately reached for comment.
The sale of 10 East 53rd is the latest in a plan SL Green announced in December to sell $2.5 billion worth of commercial and residential buildings. Chief Financial Officer Matthew DiLiberto said at the time that the company was “selling assets [and] losing [income] to fight against interest rates that are too high.”
In January, SL Green sold a 49 percent stake in 100 Park Avenue to Rockpoint at a $425 million valuation. It followed that deal in March with the $55 million sale of 690 Madison Avenue to the parent company of the French jewelry retailer Van Cleef & Arpels, and then the $223 million sale of the 209-unit rental building at 7 Dey Street to GO Residential.
SL Green also announced last week it had sold a 49 percent stake in the 46-story office tower in plans to develop at 346 Madison Avenue to Japan’s Mori Building Company at a $175 million valuation.
The firm bought 10 East 53rd Street in 2012 for $252.5 million, or about $647 per square foot, and brought in the Canada Pension Plan Investment Board as a partner. SL Green in 2024 bought out the CPPIB’s stake at a valuation of $236 million.
Meadow Partners — run by founders Jeffrey Kaplan, Andrew McDaniel and Tim Yantz — raised a $530 million fund in 2024 to invest in deals in New York and London.
The company recently made a pair of large preferred-equity investments.
Earlier this year Meadow injected $62 million into Edward J. Minskoff Equities and LaSalle Investment Management’s 51 Astor Place office building. And last year the company made a $36 million in Minskoff’s 1166 Sixth Avenue, helping to fill a hole in the capital stack after Wells Fargo extended a $235 million mortgage on the 1970s-era office skyscraper.
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