SL Inexperienced Realty Corp., Manhattan’s largest workplace landlord, is increasing its Park Avenue portfolio with the acquisition of the workplace portion of 500 Park. Ave., an 11-story, 201,000-square-foot Class A workplace constructing, from Morgan Stanley for $130 million. A deadline for the deal was not disclosed.
The REIT has entered right into a contract to purchase the workplace rental on the constructing, which additionally has 19,911 sq. ft of retail. The retail portion of the constructing on the nook of 59th Avenue within the Plaza District was not included. There are additionally 56 residential condominium models that had been additionally not a part of the workplace deal.
Newmark’s Adam Spies, Doug Harmon, Adam Doneger, Joshua King and Marcella Fasulo suggested on the transaction.
Constructing, market highlights
SL Inexperienced plans to reposition the foyer, add constructing facilities and make substantial enhancements to the general public plaza.
Morgan Stanley has owned the constructing since April 1980, buying it from HJ Kalikow Co., in line with CommercialEdge information. The identical supply reveals that the property is topic to a 99-year unsubordinated web floor lease, which is held by Kalikow Holdings and expires in March 2079.
Accomplished in 1959, it has been institutionally owned and maintained since its development as the previous PepsiCo Inc. headquarters. The historic, landmarked constructing was designed by Skidmore, Owings & Merrill. Floorplates within the glass and masonry constructing vary from 14,800 to 19,684, in line with CommercialEdge. The property had a beauty renovation in 1984. Its final renovation was in 2019, The Actual Deal reported.
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SL Inexperienced’s different Park Avenue properties embody 100 Park Ave., 125 Park Ave., 245 Park Ave., 280 Park Ave., and 450 Park Ave. The REIT additionally owns 215 Park Ave. South and 304 Park Ave. South. Final yr, an affiliate of Mori Belief Co. bought a 49.9 p.c stake in 245 Park Ave., a 1.8 million square-foot tower.
Park Avenue is one of the best workplace market in New York Metropolis with historic low emptiness, in line with SL Inexperienced, and 500 Park Ave. is ready to profit from alternatives within the fortress nook that draws prime tier tenants and triple-digit rents.
Constructing tenants embody Vera Wang leasing 26,708 sq. ft for workplace house and a showroom; The Georgetown Co.,18,795 sq. ft; CI Capital Companions, 19,158 sq. ft; PPC Enterprises, 18,683 sq. ft, and Friedland Properties, CommercialEdge information signifies. Rents are about $109.58 per sq. ft, in line with the identical supply. The property’s retail house options high-end furnishings retailer FRATO’s flagship New York Metropolis showroom.
SL Inexperienced strikes
The acquisition announcement comes days after SL Inexperienced bought an 11 p.c possession stake in One Vanderbilt, its 1.7 million-square-foot skyscraper in Midtown Manhattan, to Mori Constructing Co. in a deal that valued the tower at $4.7 billion. SL Inexperienced will proceed to personal a 60 p.c stake within the 59-story tower that was totally leased on the time of the closing. The Nationwide Pension Service of Korea owns a 27.6 p.c stake and Hines owns 1.4 p.c. The LEED Platinum-certified constructing come on-line in 2020.
Final month, Bloomberg LP signed a renewal and enlargement lease at one other SL Inexperienced Midtown Manhattan tower – 919 Third Ave. Bloomberg’s newest deal brings its footprint on the 1.5 million-square-foot, 47-story workplace tower to 924,976 sq. ft. The deal features a 749,035-square-foot, 11-year lease extension beginning March 1, 2029, and a brand new 175,841-square-foot 15-year enlargement.
