SL Green to sell Hudson Yards building for $950M

Sale to 601W Companies would be biggest in Manhattan since the pandemic began

New York /
Nov.November 04, 2020 09:45 AM
SL Green CEO Mark Holliday and 410 10th Avenue (SL Green; Google Maps)

SL Green CEO Mark Holliday and 410 10th Avenue (SL Green; Google Maps)

SL Green Realty has struck a deal with the 601W Companies for a property on Manhattan’s Far West Side at a price that would make it the largest office building to trade hands since the start of the pandemic.

The 601W Companies — headed by managing members Victor Gerstein, Michael Silberberg and Mark Krasick — reached an agreement to buy the Amazon-anchored property at 410 10th Avenue for $952.5 million, sources told The Real Deal. As part of the transaction, 601W will assume a $600 million construction loan on the property.

In a statement issued Wednesday morning, SL Green said it will retain a 5 percent interest in the property to complete its redevelopment.

“The sale of 410 Tenth Avenue is yet another indication of the Manhattan office market’s resiliency and continued global demand for high-quality, trophy assets with credit rated tenants,” SL Green managing director Brett Herschenfeld said in the statement.

A representative from 601W did not immediately respond to a request for comment. CBRE negotiated the deal on behalf of the seller.

The deal, first reported Tuesday by Real Estate Alert, would be the biggest transaction for an office building in Manhattan since the coronavirus pandemic virtually shut down the city in March. It’s one the real estate industry will watch closely as a barometer for the office market, which has been pummeled by the pandemic.

SL Green is selling the building with its partner, the Kaufman Organization. The REIT bought a stake in the property last year in a deal that valued the then-outdated office building at $440 million. Afterward, SL Green signed big leases, including Amazon’s 335,000-square-foot deal and one with First Republic Bank for 212,000 square feet.

The developer lined up a big construction loan led by Goldman Sachs and Wells Fargo to redevelop the building into a Class A property. It sits across the street from the Related Companies’ Hudson Yards megaproject, and a couple of blocks from Brookfield’s Manhattan West development.

The buyer is probably best known as the onetime owner of the Starrett-Lehigh Building in Chelsea, just a few blocks south of the new purchase. The company takes its name from the historic building’s address, 601 West 26th Street.





    Related Articles

    arrow_forward_ios
    The New York Life Sciences and Biotechnology Center at First Avenue and 41st Street (NY Life Sciences)
    Life sciences leasing breaks annual record in five months
    Life sciences leasing breaks annual record in five months
    The commercial market was hit hard by the pandemic, and property tax revenue is expected to fall 5 percent. (iStock)
    Tax bills show how much Covid devalued NYC real estate
    Tax bills show how much Covid devalued NYC real estate
    Richard Segal of Seavest Investment Group, David Marx of Marx Development Group and 902 Quentin Road in Brooklyn (Photos via Seavest Investment Group, Marx Development Group and VRMNY)
    Westchester firm buys $54M Brooklyn medical building
    Westchester firm buys $54M Brooklyn medical building
    Real Estate EFTs See Investment Amid Pandemic Recovery
    Why investors are rushing into real estate ETFs
    Why investors are rushing into real estate ETFs
    Manhattan sublease surge shows signs of slowing
    Manhattan sublease scourge finally abates
    Manhattan sublease scourge finally abates
    Blooma founder Shayne Skaff (LinkedIn, iStock)
    CRE fintech startup Blooma nabs $15M in funding
    CRE fintech startup Blooma nabs $15M in funding
    Distressed real estate investors are digging through commercial mortgage-backed securities to seize, fix and flip troubled properties. (iStock)
    Distressed investors tap throwback strategy, target CMBS
    Distressed investors tap throwback strategy, target CMBS
    President Joe Biden (Getty, iStock)
    What Joe Biden’s infrastructure plan holds for real estate
    What Joe Biden’s infrastructure plan holds for real estate
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...