The Real Deal New York

SL Green buys 20% stake in Moinian’s Sky tower

REIT exercised purchase option written into 2014 loan agreement

May 09, 2016 08:38AM
By Ariel Stulberg

Sky at 405 West Marc Holliday Joe Moinian

Sky at 605 West 42nd Street Marc Holliday Joe Moinian

SL Green Realty took the Moinian Group up on its offer to buy a significant minority stake in Moinian’s “Sky” rental tower at 605 West 42rd Street in Midtown West.

The real estate investment trust, headed by Marc Holliday, bought a 20 percent ownership interest in the 1,176-unit, 927,000-square-foot property, according to a news release.

The price is unknown, but whatever it is, it was agreed to in 2014 when SL Green gave Moinian $50 million in mezzanine financing to fund construction of the building. That loan, which was repaid prior to the closing of this recent transaction, included an option for SL Green to purchase up to 20 percent of the property.

The building, which features amenities such as two outdoor pools, a pet spa, a regulation-size basketball court and a bicycle valet service, opened for leasing last year.

Moinian was sued in March over the property by residents of the neighboring Atelier condominium. They argued that the Atelier’s offering documents promised buyers access to some of Sky’s amenities. The suit claims Moinian boarded up the entrance to the building’s fitness center that serves the Atelier’s residents. A spokesperson for the developer called the allegation “baseless” and said the gym will indeed be open to Atelier residents.

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