Park Avenue Tower Sale Fetches $730M Price Tag

SL Green Realty is reportedly in contract to purchase Park Avenue Tower for $730 million, with the sale expected to close early next year. The 36-story block-through building located at 65 East 55th Street spans roughly 621,824 square feet. According to news reports in 2014 the seller, global investment and advisory firm Blackstone, briefly owned the building situated between Park and Madison Avenues upon acquiring Equity Office Properties and its $7 billion portfolio in 2007, but flipped it as part of a 7-building portfolio to Harry Macklowe. However, during the recession, Macklowe went into default, returning the building to lender Deutsche Bank who proceeded to market the tower at a 20-30% discount. In 2008, Shorenstein Co. took control of the building for approximately $625 million as part of a 2-building deal that included 850 Third Avenue for a total of $930 million. In July 2014, Blackstone once again became the owner of the asset, paying $750 million to Shorenstein with German American Capital providing the financing to close of the transaction according to city records. Currently about 90% leased, Harrison Sitomer, chief investment officer at SL Green reportedly stated that the acquisition “will deliver sustainable cash flow and provide long-term value creation,” adding to the REIT’s other premier properties on the commercial corridor including 1 Vanderbilt Avenue, 500 Park Avenue, 450 Park Avenue and 100 Park Avenue.

Source:    https://www.crainsnewyork.com/real-estate/sl-green-buy-park-avenue-tower-blackstone