SL Green Sells Manhattan Office Building for $103M
The REIT took possession after the previous owner defaulted on a loan.
590 Fifth Ave. Image via Google Street View
New York-based REIT SL Green has sold its Midtown office tower 590 Fifth Ave. for $103 million. The company did not disclose the identity of the buyer.
SL Green, Manhattan’s largest office landlord, took over as owner of the building in October 2020 and moved to foreclose on the property, after previous owner Thor Equities defaulted on a $25 million mezzanine loan from the firm. According to a report from The Real Deal, Thor, which had owned the building since 2007, defaulted on the loan after several building tenants stopped paying rent amid the ongoing pandemic.
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The 19-story property is on Fifth Avenue between 47th and 48th Streets and has 103,000 square feet of office space as well as ground-floor retail. Located in the Plaza District of Manhattan, the mid-rise building was completed in 1987 and has since undergone cosmetic renovations first in 2006 and again in 2014. Prior owners include The Feil Organization, Western Heritable and Witkoff.
The sale price equated to $1,000 per square foot, a figure that SL Green Senior Vice President Harrison Sitomer said in prepared remarks pointed to the high demand for office properties in desirable neighborhoods. Sitomer added that the deal was part of the company’s 2021 business plan.
The buyer was represented by Albert Sultan and Morris Sabbagh of Kassin Sabbagh Realty in the deal.
As office vacancy nationwide has decreased in recent months, Manhattan’s market has remained flat. According to a recent report from CommercialEdge, in September, the borough’s vacancy was 10.8 percent. While still a lower figure than the national average of 15.4 percent, Manhattan was one of three primary markets in the U.S. that didn’t follow the national trend of falling vacancy.
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