The Moinian Group has entered into contract to acquire SL Green’s 20% stake in 605 West 42nd Street (AKA ‘Sky’) in a deal that values the property at $858.1 million, according to The Real Deal. The 71-story multifamily tower spans 948,233 SF, and is 90% occupied. It consists of 1,175 apartments (295 are affordable), plus 68,000 SF of retail space.
How the deal came together: The REIT launched a process last year to sell its interest in the residential tower, and received an offer from an institutional investor based in New York, TRD reported. But when informed about the deal, Moinian exercised its right to buy SL Green’s option.
Creating a sense of urgency: Simply hiring a broker in these types of scenarios is typically good to enough to compel the existing owner to transact.
Flashback: SL Green was initially a mezz lender on the building and exercised an option to purchase its stake in 2016. The two partners subsequently refinanced the Far West Side building in 2017 with a $550 million Freddie Mac loan.
Busy Quarter for SL Green: A&E Real Estate also entered into contract to acquire the REIT’s 41% stake in 400 East 57th Street (AKA Stonehenge 57) in a deal that values the asset at $133.5 million. The 263-unit property spans 211,000 SF, and is only 70% occupied.
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