The Real Deal New York

SL Green looks to sell Tower 45 in Midtown

40-story, 460K sf office building could sell for north of $350M

May 27, 2015 05:20PM
By Mark Maurer

Tower 45 NYC

From left: 120 West 45th Street in Midtown, Marc Holliday (credit: Steve Friedman) and Richard Baxter

Hot on the heels of a $2.6 billion deal to acquire 11 Madison Avenue, SL Green Realty is looking to sell Tower 45, a Midtown office building at 120 West 45th Street, The Real Deal has learned. The real estate investment trust hopes to fetch north of $350 million for the 40-story tower, sources said.

The 40-story, 460,000-square-foot Class A building, located between Sixth Avenue and Broadway, houses 66 office units, a garage and a retail space occupied by Bobby Van’s Steakhouse. Office tenants include Democratic presidential candidate Hillary Clinton, D.E. Shaw Investments and Keller Graduate School of Management. Average asking rents for the office space are in the mid-$50s per square foot, according to CoStar data.

A JLL team led by Richard Baxter and Yoron Cohen and a CBRE team led by Darcy Stacom and William Shanahan will be marketing the property, according to materials obtained by TRD. A call for offers is expected to go out in the next two weeks.

The brokers declined to comment, and a spokesperson for SL Green could not immediately reached.

SL Green acquired the property in 2007 for $285 million. Last year, the landlord renovated the lobby, 15-story atrium and elevators.

The building was constructed in 1989 and is 90 percent occupied. Nearly one-half of the tenancy expires in the next five years, the documents state. The floor plates range from 9,300 to 14,000 square feet.

SL Green is the city’s largest commercial landlord, and controls more than 35 million square feet of office space. Earlier this month, the REIT agreed to acquire 11 Madison Avenue, a 2.3 million-square-foot Art Deco skyscraper, from a partnership between the Sapir Organization and CIM Group. SL Green will pay $2.3 billion plus $300 million in lease-stipulated property improvements.