SL Green Realty has acquired 707 Eleventh Avenue in Midtown West from Kenneth Cole for $90 million. The six-story property spans 158,000 square feet, and will be redeveloped into a “modern, Class-A office building.”
- Be Smart: This acquisition stands out amid SL Green’s recent selling spree. The company continues to divest “non-core assets” with a focus on its $3 billion share buyback program. The REIT continues to believe that its stock price is undervalued relative to its assets.
- Notable dispositions from fourth quarter earnings: The company sold a development site at 1640 Flatbush Avenue to the Moinian Group for $16.2 million, and its interest in 562 Fifth Avenue to Extell for $52.4 million. Additionally, the REIT closed on the sale of a good chunk of its suburban portfolio, including properties in White Plains, Valhalla, and Stamford.
- Nice tidbit: Average tenant concessions for office leases in the company’s portfolio was 6.8 months of free rent with a tenant improvement allowance of $63.38 per rentable square foot.