SL Green slows acquisition pace, focuses on filling vacancies

TRD New York /
Nov.November 28, 2011 09:02 AM
alternate
text
From left: SL Green President Andrew Mathias, 180 Maiden Lane, 280 Park Avenue and 3 Columbus Circle

SL Green Realty, the city’s largest landlord, has suddenly put a halt to its acquisition binge, Crain’s reported, and has turned its focus to filling the space it already owns.

Since the end of 2009, the firm has had a hand in many of the large office tower trades in Manhattan, bringing its portfolio to 34 towers and about 25.5 million square feet. SL Green even dabbled more heavily in retail properties and, for the first time, residential properties. Earlier this year, it assembled 49,000 square feet of retail space in Times Square with Jeff Sutton, and acquired an eight-building portfolio including 724 Fifth Avenue with Stonehenge Partners.

But acquisitions have slowed amidst rising prices. Manhattan Class A office buildings have doubled in price since 2009, according to Cushman & Wakefield. “There is just so much capital chasing so few deals now,” said Andrew Mathias, SL Green’s president. “Our number-one focus is to finish leasing what we have acquired,” Mathias told Crains.

Though the occupancy rate across SL Green’s portfolio is 95 percent, recent acquisitions such as 3 Columbus Circle, 180 Maiden Lane and 280 Park Avenue pose challenges, especially in a leasing climate that’s expected to cool next year. About 70 percent of 3 Columbus Circle is empty, 180 Maiden Lane‘s anchor tenant, AIG, has a lease for two-thirds of the building’s space that expires in 2014 and 280 Park Avenue will become 50 percent available in the next year. In each of those properties, SL Green is funding a major renovation in hopes of upping rents. [Crain’s]


Related Articles

arrow_forward_ios
The Daily News Building at 220 East 42nd Street and SL Green CEO Marc Holliday (Credit: Getty Images)

SL Green puts Daily News building up for sale

SL Green puts Daily News building up for sale
SL Green snags private-equity firm at One Vanderbilt

SL Green snags private-equity firm at
One Vanderbilt

SL Green snags private-equity firm at
One Vanderbilt
SL Green’s locks in big bank lease at Hudson Yards redevelopment site

SL Green’s locks in big bank lease at
Hudson Yards redevelopment site

SL Green’s locks in big bank lease at
Hudson Yards redevelopment site
SL Green CEO Marc Holliday, One Madison Avenue and Hines Group CEO Jeffrey Hines (SL Green; Hines via Sanjeev Verma/Hindustan Times via Getty Images)

SL Green sells half of One Madison to Hines, NPS of Korea

SL Green sells half of One Madison to Hines, NPS of Korea
SL Green CEO Marc Holliday and CFO Matthew DiLiberto (Credit: SL Green)

SL Green preparing $1B coronavirus cushion

SL Green preparing $1B coronavirus cushion
SL Green's Mark Holliday with Industry City in Brooklyn and 95 Morton Street (Credit: Industry City; SL Green; Google Maps)

SL Green in talks to sell loans to CIM, Rockwood

SL Green in talks to sell loans to CIM, Rockwood
10 East 53rd Street and SL Green's Marc Holliday (Credit: TPG Architecture, Sl Green)

SL Green snags $220M refi for Midtown East office tower

SL Green snags $220M refi for Midtown East office tower
1185 Sixth Avenue (Credit: Google Maps)

3 workers test positive for coronavirus at 3 SL Green office towers

3 workers test positive for coronavirus at 3 SL Green office towers
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...