The Real Deal New York

Hines sells HarperCollins building to SL Green for $253M

January 11, 2012 09:00AM

SL Green Realty agreed to purchase the HarperCollins Building from Hines Interests for $252.5 million, the firm announced in a press release yesterday. An unnamed partner joined SL Green in the acquisition of the 390,000-square-foot office tower at 10 East 53rd Street, between Madison and Fifth avenues, and will hold a 55 percent stake in the property.

Darcy Stacom and Bill Shanahan, vice chairmen of CBRE Group, represented Hines in the transaction, which earlier reports estimated would be worth $242 million. Hines purchased the property for $58.3 million in 1993.

The tower is 91 percent leased, according to SL Green, but leases for 60 percent of the tower expire within the next thee years. SL Green said it believes current rents on the building are “substantially below market.” The firm also said it would embark on a capital improvement program for the Plaza District tower.

Though previous reports pegged SL Green’s acquisition pace as “slowing“, SL Green President Andrew Mathias said the opportunity to acquire a Plaza District office property is rare, and so when the firm saw “the chance to add one of these assets to our core Midtown portfolio, we seized it.” [CoStar]