SL Green Realty has sold a 49% interest in 220 East 42nd St. to a real estate fund managed by Meritz Alternative Investment Management for $790.1 million. The REIT has retained a 51% interest in the property and will continue to oversee its management and leasing. The transaction generated net cash proceeds to SL Green of $136.1 million.
This is the fourth transaction on which two firms have partnered.
Also known as the News Building, 220 East 42nd St. is a 37-story art-deco skyscraper that was originally the headquarters for The New York Daily News. SL Green purchased the property in February 2003 and then repositioned and retenanted it.
It now has an occupancy of 93% with a weighted average lease term of over 15 years, with such tenants as Visiting Nurse Service of New York, Omnicom Group, local television station WPIX and the United Nations.
SL Green was advised by Adam Spies and Doug Harmon of Cushman and Wakefield.