The Real Deal New York

SL Green lands nonprofit tenant for News Building in Midtown

Landlord has recently considering a sale of the landmark property
February 05, 2019 08:30AM

From left: 220 East 42nd Street, SL Green’s Marc Holliday, and YAI’s George Contos (Credit: Google Maps, SL Green, and Facebook)

Despite recently considering a sale of the property, SL Green Realty has continued to bring in new tenants to the Art Deco “News Building” in Midtown, with the latest deal bringing the tower to 96 percent full.

The latest tenant at 220 East 42nd Street is the nonprofit Young Adult Institute (YAI), which will be taking over 75,000 square feet on the entire eighth floor and part of the seventh floor, the New York Post reported. The organization will also have use of a private, employees-only entrance on East 41st Street.

YAI provides support and services for people with intellectual and development disabilities. CEO George Contos says the group will work closely with SL Green to create a “custom-built and contemporary headquarters that enables our staff to work more efficiently and collegially than was possible” at its previous location.

SL Green recently acquired a majority stake in YAI’s previous home, 460 West 34th Street, and is planning to renovate that property in partnership with Kaufman Organization.

The New York-based REIT was recently reported to be considering a sale of the News Building, built in 1920 as the headquarters for the New York Daily News, for as much as $1 billion. The company is also poised to put 521 Fifth Avenue up for sale to fund its stock buyback program.

SL Green bought the 37-story tower for $265 million in 2003. Other office tenants include Omnicom Group, local television station WPIX and the United Nations.

A JLL team represented the tenants, while the landlords were represented by Cushman & Wakefield. [NYP] — Kevin Sun