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SL Green’s sale of three properties to generate $240M net cash

Company has agreements to unload 2 Herald Square, 180 Broadway and has sold 985-987 Third Avenue

From left: 180 Broadway, 2 Herald Square and 985-987 Third Avenue
From left: 180 Broadway, 2 Herald Square and 985-987 Third Avenue

SL Green Realty announced the sales of three Manhattan properties in separate transactions that will generate $240 million in net cash proceeds for the real estate investment trust.

SL Green has already closed on the sale of a development property at 985-987 Third Avenue, between 58th and 59th streets, for $68.7 million, according to a release from the landlord, and was represented by Massey Knakal Realty Services’ Bob Knakal in the deal.

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In partnership with Jeff Sutton, SL Green has also agreed to sell their interests, including the company’s fee position and retail condo unit in a mixed-use college dormitory and retail property at 180 Broadway for $222.5 million. That sale, in which SL Green is being represented by Eastdil Secured’s Adam Spies, is expected to close in the third quarter of 2014. Lastly, SL Green’s leased fee interest in 2 Herald Square, an 11-story, 365,000-square-foot commercial office building, will go for $365 million. That sale, in which the landlord is being represented by Cushman & Wakefield’s Steven Kohn, is expected to close in the fourth quarter of 2014.

SL Green acquired the leased fee interest in 2 Herald Square for $225 million in a joint-venture partnership with Gramercy Capital in 2007, fully consolidating its position in 2010. SL Green and Jeff Sutton developed 180 Broadway for Pace University. The firm also picked up 985-987 Third Avenue in December 2012 for $18 million. — Julie Strickland

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