SL Green Pockets $95M for Manhattan Asset

707 Eleventh Ave. Image courtesy of SL Green

Following its dispositions of Manhattan office properties earlier this year, SL Green continues its selling streak. The REIT has sold its ownership interest of 707 Eleventh Ave. for $95 million to an undisclosed domestic buyer.

The transaction is expected to close in the first quarter of 2022, subject to customary closing conditions, and the proceeds from the sale will be used to repay corporate debt, according to SL Green. JLL’s Andrew Scandalios represented the company in the transaction.

SL Green acquired the six-story loft-style building in January 2020 for $90 million with the help of a $53.5 million acquisition loan provided by Wells Fargo, according to CommercialEdge data. The 160,000-square-foot office building previously served as Kenneth Cole’s headquarters but is currently 23 percent leased to KCP Holdco Inc, according to JLL.

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Following its acquisition of 707 Eleventh Ave. in 2020, SL Green had plans for a comprehensive renovation that would include updating the infrastructure while preserving the industrial elements of the property. The renovation plans also called for a new private lobby, new elevator cabs, new bathrooms and 22,000 square feet of outdoor space, but the REIT had only undertaken a few minor renovations.

SL Green’s selling spree

Harrison Sitomer, senior vice president at SL Green, said in prepared remarks that the sale of 707 Eleventh Ave. demonstrates the investor demand for quality, value-add investment opportunities in New York City.

SL Green capitalized on this investor interest, selling off two Manhattan office properties earlier this year. In October, the company divested 590 Fifth Ave., a 19-story office building with ground-floor retail, for $103 million. Earlier in the year, SL Green also agreed to sell a pair of adjoining office towers in Midtown Manhattan for $325 million.