SL Green Realty sold a stake in its massive One Vanderbilt development to the National Pension Service of Korea, the real estate investment trust said Thursday.
The Korean pension fund, which has about $475 billion in assets under management, is taking a 27.6 percent-stake in the building. Hines, which is a co-developer of the tower but previously had no ownership, is taking a 1.4 percent interest.
The deal will pump $525 million in equity into the 1.7 million-square-foot, 1,401-foot-high office-tower project near Grand Central Station, which is projected to cost more than $3.1 billion.
SL Green CEO Marc Holliday said the investment from the Korean fund “will help realize our shared vision” for developing the tower. “Hines has been with us at One Vanderbilt from the beginning and will be a terrific addition to the joint venture,” he said.
The REIT had been shopping for JV partners for the building since mid-2015.
Construction is expected to be complete in 2020. SL Green closed a construction loan totaling $1.5 billion from a syndicate led by Wells Fargo that included Bank of New York Mellon, JP Morgan Chase, TD Bank and Bank of China.
TD Bank will be the building’s anchor tenant, slated to occupy 200,000 square feet.
NPS, along with partners Monday Properties and Invesco, previously owned the Helmsley Building at 230 Park Avenue, which they sold for $1.2 billion to Scott Rechler’s RXR Realty in 2015. — E.B. Solomont