A partnership between Quantum Global Real Estate and LaSalle Investment Management has agreed to purchase a 49.5 percent equity interest in 521 Fifth Avenue from SL Green for $72 million, the New York Observer reported. SL Green had been attempting to sell equity in the 39-story office tower since earlier this year when it hired Eastdil Secured to help market the building.
The joint venture, known as Plaza Global Real Estate Partners, is expected to close the deal by the end of the year.
SL Green is planning to refinance its existing $150 million mortgage with United Overseas Bank with a new $170 million mortgage, according to Real Capital Analytics data cited by the Observer.
“The partial sale unlocks proceeds we intend to use to fuel our continued growth and allows us to benefit from the potential of this well located, top-quality asset,” SL Green President Andrew Mathias said in a prepared statement. “We look forward to continuing our successful track record of building value for joint venture partners with Quantum Global and LaSalle. This investment again highlights Manhattan’s extraordinary appeal to leading institutional investors.”
Eastdil’s Douglas Harmon and Adam Spies handled the deal on behalf of SL Green. [NYO] —Christopher Cameron