The Real Deal New York

Allianz deal values 1515 Broadway at $1.95B

SL Green in contract to sell 43% stake in Midtown office tower
November 14, 2017 03:20PM

From left: 1515 Broadway, Allianz Real Estate’s Christoph Donner and SL Green’s Marc Holliday

Allianz Real Estate is in contract to buy a 43 percent stake in the office tower 1515 Broadway near Times Square. The seller, SL Green Realty, said it expects to end up with $416 million from the deal.

The sale would value the tower at $1.95 billion, the New York Post reported, making it one of the most valuable buildings in the United States. Allianz will also buy a portion on the debt at the 57-story building, located between West 44th and 45th streets. Cushman & Wakefield brokered the deal.

Major tenants at the 1.9 million-square-foot property include Viacom, which has its headquarters there and takes up approximately 85 percent of the buildings total space after renewing and expanding its lease in 2012. Retail tenants include Skechers and Oakley.

China Investment Corporation and several other bidders were reportedly vying for the stake earlier this year.

Allianz Real Estate, a division of the German insurance and financial services company Allianz, last year acquired a 44 percent stake in 10 Hudson Yards in a $707 million lease-back deal with Coach.

In September, SL Green and RXR Realty agreed to buy a 49 percent stake in One Worldwide Plaza, in a deal valuing that building at $1.7 billion. [NYP] Will Parker