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.





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