The Real Deal New York

SL Green places 562 Fifth Avenue retail site on market

Thor Equities, Extell Development hold interest in property

May 14, 2015 04:40PM

562 Fifth Avenue

Marc Holliday (Credit: Steve Friedman) and 562 Fifth Avenue

SL Green Realty has placed its retail development site at 562 Fifth Avenue in Midtown on the market.

The real estate investment trust has tasked Cushman & Wakefield with marketing the property, located at the corner of West 46th Street. The site currently houses a 13-story, 42,364-square-foot office and retail building.

While SL Green owns the building and the land beneath it, Joe Sitt’s Thor Equities has a triple-net lease through 2025 that generates $1.23 million in annual income, according to the New York Daily News.

In addition, Gary Barnett’s Extell Development owns the property’s air rights, and would have to see the building demolished to make use of those rights. SL Green reportedly bought the land for $67.5 million, with air rights sold to Extell for $11.7 million.

The site holds the potential for an 85-foot-high retail flagship with 127 feet of wraparound frontage on Fifth Avenue. Cushman & Wakefield’s Bob Knakal, the listing broker, declined to specify an asking price for the property. [NYDN]Rey Mashayekhi