Tokyo-based Developer Purchases 49.9% Stake in Park Avenue Building

SL Green Realty has sold a 49.9% interest in 245 Park Avenue to a U.S affiliate of Mori Trust Co., Ltd. The acquisition of the minority stake in the 1.8 million-square-foot tower by the Tokyo-based company was at a gross valuation of $2.0 billion according to the press release by the REIT. SL Green acquired the building that spans the entire city block bound by Park and Lexington Avenues between East 46th and 47th Streets in September 2022, having previously had a preferred equity investment in the property. SL Green’s news release at the time indicated that the property continues to be subject to “the in-place mortgage and mezzanine loans totaling $1.768 building” with a combined fixed interest rate of 4.30% based on existing terms and a maturity in June 2027. Previously intended plans to reposition the asset with a partner are expected to move forward.