Moinian deal with SL Green values Sky apartments at $850M

Joe Moinian’s firm is buying partner’s 20% stake

New York /
Apr.April 21, 2021 05:33 PM
Joe Moinian and Marc Holliday with a rendering of 605 West 42nd Street (Moinian, SL Green, Hill West Architects)

Joe Moinian and Marc Holliday with a rendering of 605 West 42nd Street (Moinian, SL Green, Hill West Architects)

Joe Moinian and SL Green Realty have struck a deal at their massive Sky apartment tower that values the Far West Side building at more than $850 million.

The Moinian Group has a contract to buy SL Green’s 20-percent stake in the 71-story tower at 605 West 42nd Street, sources told The Real Deal.

SL Green announced Wednesday afternoon that it had come to terms on a deal to sell its stake for about $53 million in cash, but did not identify the buyer.

The real estate investment trust had launched a process last year to sell its interest in the 948,000-square-foot tower, and earlier this year had an offer from an institutional investor based in New York, according to a source familiar with the process. But when informed about the deal, Moinian exercised its right to buy SL Green’s option.

The transaction values the building at $858.1 million, according to SL Green.

Representatives for SL Green and Moinian were not immediately available for comment. Eastdil Secured’s Gary Phillips and Will Silverman brokered the sale.

Moinian completed the 1,175-unit Sky — one of the largest rental buildings in the city — in 2016. SL Green was initially a mezzanine lender on the building and exercised an option to purchase its stake that year.

The two partners refinanced the property in 2017 with a $550 million Freddie Mac loan.





    Related Articles

    arrow_forward_ios
    Joe Moinian with 123 Linden Blvd (The Moinian Group)
    Moinian nabs $223M refi for Flatbush apartment complex
    Moinian nabs $223M refi for Flatbush apartment complex
    Sen. Brian Kavanagh (Getty, New York Senate)
    Lawmakers propose tweaks to rent relief program, foreclosure protections
    Lawmakers propose tweaks to rent relief program, foreclosure protections
    Mitch Kossoff
    “Ripe for abuse”: Real estate escrow funds may not be so secure after all
    “Ripe for abuse”: Real estate escrow funds may not be so secure after all
    Laurent Morali and renderings of the project (Kushner Companies)
    Kushner Companies wins approval for four-tower mixed-use project in downtown Fort Lauderdale
    Kushner Companies wins approval for four-tower mixed-use project in downtown Fort Lauderdale
    (Moinian Group, CVS)
    CVS signs lease for 512 7th Avenue store
    CVS signs lease for 512 7th Avenue store
    Shore Park building with Gloria and Emilio Estefan (Douglas Elliman, Getty)
    Ocean Drive property owned by Gloria and Emilio Estefan lists for $45M
    Ocean Drive property owned by Gloria and Emilio Estefan lists for $45M
    David Schonbraun (SL Green)
    SL Green investment chief David Schonbraun steps down
    SL Green investment chief David Schonbraun steps down
    Blackstone CEO Stephen Schwarzman (Getty, iStock)
    Blackstone buys San Diego apartment complexes in $1B deal
    Blackstone buys San Diego apartment complexes in $1B deal
    arrow_forward_ios

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

    Loading...