SL Green, the largest office landlord in New York City, has sold 521 Fifth Ave., to Savanna for $381 million, the company announced today. SL Green owned a 50.5 percent stake in the 460,000-square-foot Midtown office property. The transaction is expected to close in the second quarter of this year.
Built in 1929, the 39-story Class A office tower is 96 percent leased with tenants including China Trust Commercial Bank and Berkadia Real Estate Advisors. The property also includes 20,000 square feet of street-level retail.
After acquiring the leasehold interest in the property in 2006, SL Green took ownership of the fee interest in 2011 for $225 million. By 2012, the company sold a 49.5 percent minority stake in the office tower to Plaza Global Real Estate Partners, a joint venture between LaSalle Investment Management and Quantum Global Real Estate.
Darcy Stacom and Bill Shanahan of CBRE represented SL Green in the deal.
“This transaction demonstrates the strong demand for quality assets in East Midtown, Manhattan’s preeminent business district,” said Isaac Zion, co-chief investment officer at SL Green, in prepared remarks. “We saw incredible interest in this property from numerous investors.”
Last December, SL Green upped its investment in 245 Park Ave., a Manhattan office property, to $148 million. The same month, the office landlord entered the Hudson Yards neighborhood with the purchase of a $40 million office asset on West 34th Street.
The Manhattan purchase by Savanna comes not long after the company was left in the lurch following Amazon’s reversal on its Long Island City, Queens, HQ2 plan. Savanna is still looking for a tenant to fill the 1 million-square-foot vacancy at the One Court Square property.