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
    Mitch Kossoff charged with grand larceny
    Mitch Kossoff charged with grand larceny
    Mitch Kossoff charged with grand larceny
    273 Skillman Street, 83 Nostrand Avenue and 1358 Dekalb Avenue with Andrew Farkas of Island Capital (Google Maps, Getty)
    All Year’s massive Brooklyn portfolio in distress, sparking bidding war
    All Year’s massive Brooklyn portfolio in distress, sparking bidding war
    Mitchell Kossoff (iStock)
    Mitch Kossoff to plead guilty
    Mitch Kossoff to plead guilty
    Andrew Penson and SL Green in fight to control Times Square hotel
    Andrew Penson and SL Green in fight to control Times Square hotel
    Andrew Penson and SL Green in fight to control Times Square hotel
    Boston Properties’ Owen Thomas, Vornado Realty Trust’s Steve Roth, Paramount Group’s Albert Behler, SL Green’s Marc Holliday and Empire Real Estate Trust’s Tony Malkin  (iStock, slgreen.com, vno.com, paramount-group.com, esrtreit.com, LinkedIn)
    Office landlords profess optimism despite dip in occupancy
    Office landlords profess optimism despite dip in occupancy
    Greystar sells multifamily portfolio to Ivanhoé Cambridge for $3.6B
    Greystar sells multifamily portfolio to Ivanhoé Cambridge for $3.6B
    Greystar sells multifamily portfolio to Ivanhoé Cambridge for $3.6B
    Sam Zell’s luxury rentals regain pricing power
    Sam Zell’s luxury rentals regain pricing power
    Sam Zell’s luxury rentals regain pricing power
    Hello Living faces end as Madison Realty pursues foreclosure
    Hello Living faces end as Madison Realty pursues foreclosure
    Hello Living faces end as Madison Realty pursues foreclosure
    arrow_forward_ios

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

    Loading...