Manhattan, NY A joint venture between SL Green Realty Corp. and an institutional investment partner, entered into an agreement to sell 521 Fifth Ave. to Savanna, a New York City based real estate investment manager, owner/operator, and developer. The 39-story, 460,000 s/f Midtown office building will be sold for a gross sales price of $381 million. This transaction is expected to close in the second quarter of this year, subject to customary closing conditions.
The sale is expected to generate net cash proceeds to SL Green of $100 million. SL Green owns a 50.5% interest in the joint venture.
SL Green’s co-chief investment officer, Isaac Zion, said, “This transaction demonstrates the strong demand for quality assets in East Midtown, Manhattan’s preeminent business district. We saw incredible interest in this property from numerous investors.”
SL Green acquired the leasehold interest in the property in March 2006 and subsequently took ownership of the fee interest in April 2011 before entering into a joint venture with an institutional investment partner in the fourth quarter of 2012.
Darcy Stacom and Bill Shanahan of CBRE represented the sellers.