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SL Green nears deal to acquire New York REIT

Transaction would give Holliday-led firm control of 3.4M sf of space

From left: Michael Happel, 1440 Broadway and Marc Holliday
From left: Michael Happel, 1440 Broadway and Marc Holliday

SL Green Realty is close to finalizing a deal to buy New York REIT, according to Bloomberg.

The deal would give the Marc Holliday-led real estate investment trust control of a 23-building portfolio with about 3.4 million square feet of rentable space, and solidify its position as New York City’s largest commercial landlord.

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The transaction price wasn’t disclosed. In November, New York REIT CEO Michael Happel said he would “fully support” a sale of the company. The firm had tapped Eastdil Secured to advise on “potential strategic transactions” after facing stick from shareholders over the company’s stock price performance.

Prior to the New York REIT deal, SL Green held interests in 121 Manhattan buildings totaling over 43 million square feet, according to its website. In 2006, it paid about $4 billion in cash and stock (plus assumed $2 billion in debt) for Reckson Associates Realty Corporation, a real estate investment firm run at the time by Scott Rechler.

New York REIT’s portfolio includes 1440 Broadway, a 25-story, 756,000-square-foot property in Midtown. The REIT is still sponsored by Nicholas Schorsch‘s beleaguered AR Capital, though Schorsch stepped down from the New York REIT board last year. Apollo Global Management was in talks to acquire AR Capital for $378 million this year, but those talks collapsed last month and Apollo co-founder Marc Rowan resigned from New York REIT’s board. [Bloomberg]Hiten Samtani

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