SL Green closes on Park Avenue office tower

$445M purchase financed with Wells Fargo mortgage

SL Green's Harrison Sitomer and 450 Park Avenue (SL Green, Taconic Partners)
SL Green's Harrison Sitomer and 450 Park Avenue (SL Green, Taconic Partners)

Manhattan’s largest office landlord has closed the deal on a major Park Avenue purchase.

SL Green Realty closed on its $445 million buy of 450 Park Avenue, the company announced Wednesday. The Real Deal reported in March the landlord was in late-stage talks to buy the Plaza District office tower.

SL Green is taking a 25.1 percent interest in the property and will lead leasing and management on behalf of a partnership. The rest of the ownership group includes institutional investors from Israel and South Korea.

Wells Fargo provided a $267 million mortgage to finance the acquisition. CBRE’s Darcy Stacom and Bill Shanahan were on the team that advised SL Green on the transaction.

The sellers were Oxford Properties and Crown Acquisitions, who sold the building for a deep discount when considering the $545 million they paid for the 33-story, 337,000-square-foot building in 2014.

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Those owners bought the 1970s-era building from Keith Rubenstein’s Somerset Partners and a family trust of British investor and racehorse owner Michael Tabor. The previous owners paid more than $500 million for the tower in 2007.

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Much of the building’s value is tied to the retail at its base, which sits on the corner of Park Avenue and East 57th Street. Crown and Oxford in December leased 17,000 square feet to Florida-based BankUnited for a Manhattan flagship location. Aston Martin’s first Manhattan showroom will also soon open there.

Aby Rosen’s RFR Realty was in the mix to buy the office tower at one point, sources previously told TRD.

Since 2018, SL Green has been less focused on buying office properties and more focused on selling to prop up a stock-buyback program initiated in 2016. The program is able to purchase up to $3.5 billion of shares.

SL Green this month sold the vacant office condo at 609 Fifth Avenue for $100.5 million to a domestic investor. The deal came two years after the landlord sold the retail portion of the building to London-based billionaires David and Simon Reuben for $168 million.