SL Green invests $148M for stake in HNA’s 245 Park Avenue

Company will officially serve as property manager at the tower

245 Park Avenue and Marc Holliday (Credit: Wikipedia and SL Green)
245 Park Avenue and Marc Holliday (Credit: Wikipedia and SL Green)

SL Green Realty has finalized a deal with HNA Group to buy a stake in 245 Park Avenue, investing a total of $148.2 million.

The real estate investment trust announced on Friday that as part of the deal, the company will serve as the office tower’s property manager and will oversee leasing, the New York Post reported. HNA Group was represented by Eastdil Secured in the transaction.

Sign Up for the undefined Newsletter

HNA bought the 1.78-million-square-foot building in 2017, paying $2.2 billion with $1.8 billion in debt. In June, the Wall Street Journal reported that SL Green planned to buy a stake in the building, which would give it operating control of the property as well as a preferred position in the joint venture with HNA. At the time, no details of the deal were available.

Meanwhile, the struggling Chinese conglomerate has committed to selling off $22 billion in stocks and real estate assets. Earlier this year, HNA sold off a stake in Deutsche Bank and listed a stake in Hilton spinoff Park Hotels & resorts. In September, HNA gave up 80,000 square feet of prime Hong Kong office space that it never moved into but rented for $1.5 million a month.

Earlier this month, the company offered to pay off certain investors with plane tickets instead of cash. [NYP] — Kathryn Brenzel