SL Green mulls buy at Extell’s International Gem Tower

Deal for top 13 stories could be worth more than $400M, sources say

TRD New York /
Aug.August 06, 2014 02:25 PM

SL Green is reportedly in talks to pick up the top 13 stories of Extell Development’s International Gem Tower.

Sources familiar with the negotiations told Crain’s the landlord would pick up floors 22 to 34 in the 315,000-square foot tower at 50 West 47th Street, which was finished last year. The floors below that chunk were crafted as office condo space and chiefly sold off to businesses in the jewelry industry, while the upper rental office portion has sat vacant, as The Real Deal reported this month.

There is no clear word on how much SL Green is looking to pay for the space, but sources speculated that the deal could rake in $400 million or more. And with no transaction currently settled, sources said Extell CEO Gary Barnett could still opt to go with a different buyer or keep the property.

Neither Barnett nor a spokesperson for SL Green could be reached by Crain’s for comment.

Should the deal go through, it would be firm’s latest effort to buy and turn around an under-performing property, Crain’s reported. The company picked up a stake in 3 Columbus Circle in 2011, where advertising firm Young & Rubicam later picked up roughly 350,000 square feet in the building. Earlier this year, SL Green successfully leased up two Greenwich Street buildings it owns with Citigroup’s lease renewal. [Crain’s]Julie Strickland

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