The Real Deal New York

SL Green to sell two Fifth Avenue dev sites for $125M

The sites are located at 570 Fifth Avenue and 574 Fifth Avenue

September 17, 2015 09:02AM

570 and 574 Madison Avenue in Midtown (inset: SL Green's Marc Holliday)

570 and 574 Madison Avenue in Midtown (inset: SL Green’s Marc Holliday)

Less than a month after closing on the largest single-building transaction in New York history, 11 Madison Avenue, SL Green Realty is again making deals, hoping to raise cash to invest in its new marquee property.

The commercial real estate giant agreed to sell two retail development sites, at 570 Fifth Avenue and 574 Fifth Avenue in Midtown, banking $125.4 million.

The sites’ buyer is not known, but the deal is expected to close this year, the firm said.

SL Green bought the two sites from Extell Development in November 2013 for a total of $78.7 million. It closed on the $2.6 billion purchase of 11 Madison Avenue last month.

“With this transaction, SL Green will realize returns on its original investment that are consistent with our original underwriting without having incurred any development risk,” said Brett Herschenfeld, a managing director at the company. “In addition, the sale provides a source of equity capital that can be tax efficiently redeployed into Eleven Madison on an immediately accretive basis.”  – Ariel Stulberg

Correction: A prior version of this article provided the selling price as $13,690 per zoning square foot.