Moinian deal with SL Green values Sky apartments at $850M
Joe Moinian’s firm is buying partner’s 20% stake
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.