SL Green completes $252.5M purchase of Midtown office tower

February 27, 2012 04:00PM

SL Green has closed on its acquisition of a 37-story, 390,000-square-foot Midtown office building at 10 East 53rd Street for $252.5 million, or approximately $647 per square foot, the company announced today, and has sold a 45 percent interest in the building to Canada Pension Plan Investment Board.

New York Commercial Bank is providing a $125 million floating-rate mortgage for the building, while Canada Pension Plan paid an equity investment of $57.4 million before closing costs, SL Green said.

“We believe that the prestige and value of quality properties in The Plaza District of Midtown Manhattan is unparalleled,” said Andrew Mathias, president of SL Green. “The chance to add an additional plaza asset to our core portfolio does not come along often and upon being presented with this unique opportunity, we took it. Having [Canada Pension Plan] join with us in the venture further supports our belief in the potential of 10 East 53rd Street.”

Peter Ballon, vice president and head of real estate Investment at Canada Pension Plan, said the relationship with SL Green would likely be a fruitful one.

“We are pleased to be partnering once again with SL Green who has a strong track record at repositioning Midtown office properties,” he said.

SL Green previously sold a 45 percent interest in 1221 Avenue of the Americas to the fund for $576 million.