The Real Deal New York

SL Green continues selling spree, lists office condo for $700M

REIT and Ivanhoe Cambridge seeking buyers for 24 floors at 1745 Broadway

October 13, 2015 04:25PM

From left: 1745 Broadway and SL Green's Marc Holliday

From left: 1745 Broadway and SL Green’s Marc Holliday

SL Green put an office space at 1745 Broadway on the market for more than $700 million, continuing a selling spree that follows the blockbuster purchase of 11 Madison Avenue.

The real estate investment trust holds a 56.9-percent stake in 685,000 square feet of space, which spans floors two through 25. Pension-backed Canadian investment firm Ivanhoe Cambridge owns the minority stake. A JLL team led by Richard Baxter is marketing the office condo.

According to Crain’s, publisher Random House has leased the entire space until 2023 but is likely to opt out of floors 14 to 25 in 2018, offering a buyer the chance to raise rents.

SL Green dished out $2.6 billion for the 2 million-square-foot office building 11 Madison Avenue in August, and has been selling off Manhattan properties to raise money for the purchase. Last month, the company sold the office building Tower 45 at 120 West 45th Street to Kamber Management for $380 million and an 80-percent stake in mixed-use building 131-137 Spring Street to Invesco for $220 million.

1745 Broadway, a 930,000-square-foot tower located between 55th and 56th Streets developed by the Related Companies, was completed in 2000. SL Green first bought a minority stake in the office condo in 2007, expanding it to a majority position last year. [Crain’s]Konrad Putzier