NEW YORK CITY—SL Green Realty Corp. has reached an agreement to sell its 16 Court St., the tallest office building in Brooklyn, for $171 million to Los Angeles-based CIM Group.
The 36-story, 317,600-square-foot office building was purchased by SL Green 10 years ago through a joint venture in 2007 for $107.5 million. SL Green took full ownership of the property in 2013. The deal is expected to close during the fourth quarter of this year and will generate an estimated net cash proceeds of approximately $164 million to SL Green. Darcy Stacom of CBRE represented SL Green in the transaction
SL Green implemented a strategic repositioning plan at the high-rise property that is also known as the Montague-Court Building. The capital program included a lobby renovation and elevator upgrade, new corridors, new windows and other improvements. Occupancy in the building is currently 94%. According to its website, the property’s major tenants include Michael Van Valkenburgh Associates, The City University of New York, Maker’s Row and Gregory’s Coffee (retail tenant).
SL Green co-chief investment officer Isaac Zion says of the deal, “This transaction underscores SL Green’s strong track record of identifying and unlocking value in New York City office buildings. We foresaw the demand for revitalized office product in Downtown Brooklyn and are very pleased with the successful execution of our business plan.”
CIM Group, a full service real estate and infrastructure fund manager, has been very busy on the acquisition front of late. The firm, which has operations in New York City, announced yesterday it had acquired, in partnership with fifteenfortyseven Critical Systems Realty, 400 Paul Ave. in San Francisco. The 7.3-acre property is fully-entitled for the development of a 187,000-square-foot data center with 24 megawatts of power capacity. The acquisition also includes two 1930s-era buildings totaling 54,225 square feet that will be improved to serve as office and support space for data center tenants.
On Monday, CIM Group reported that it had purchased Stacks on Main, a newly constructed five-story, 268-unit apartment building in Nashville. Rounding out its recent portfolio additions is the purchase of Turtle Creek Village, a mixed-use property in Dallas encompassing an 18-story, Class A office building, and a grocery-anchored retail center in the Turtle Creek neighborhood of Dallas. The property was acquired from a joint venture of Lincoln Property Companies. Built in 1973, the property underwent a comprehensive renovation in 2014.
Also in a deal announced in late July, the firm sold the recently completed 286-guest room hotel developed as part of its mixed-use Sunset La Cienega project in West Hollywood, CA. The hotel is comprised of two 10-story towers on the southeast corner of Sunset and La Cienega boulevards. The sale follows the recent disposition of the adjacent 8500 Sunset residential complex with 190 residences in two eight-story buildings. CIM is retaining ownership of the 42,000 square feet of street level retail at 8500, of which 22,000 square feet has been leased to Fred Segal for its new flagship store set to open this fall.
No financial terms of its recent purchases or hotel property disposition were disclosed.