NEW YORK, June 26, 2023 (GLOBE NEWSWIRE) — SL Green Realty Corp. (NYSE:SLG), New York City’s largest office landlord, today announced that it has sold a 49.9% interest in 245 Park Avenue to a U.S. affiliate of Mori Trust Co., Ltd. at a gross asset valuation of $2.0 billion.
“We are thrilled to partner with Mori Trust Co., a premier development and investment company based in Tokyo. The formation of this new partnership with Mori Trust reflects the continuing allure of investing in trophy midtown NY assets and resilience of the Park Avenue corridor as New York’s most desirable office market. It is also an affirmation of the institutional capital markets’ recognition of the enormous potential for 245 Park to benefit from strategic investments and thoughtful stewardship,” said Harrison Sitomer, Chief Investment Officer of SL Green. “We are seeing strong demand from tenants and investors for high quality, amenitized office properties located in highly commutable areas. As their first investment in New York City, Mori Trust shares our belief in this market and commitment to elevate 245 Park to one of the best office assets in the Midtown East submarket.”
SL Green acquired the 1.8 million-square-foot, headquarters-quality office property on the coveted Park Avenue corridor between 46th and 47th Streets in September 2022 with the intent to reposition the asset with a partner. The company has retained Kohn Pedersen Fox Associates to assist in a redesign of the building that is focused on a new Park Avenue podium façade, new windows, improvements to both the Park Avenue and Lexington Avenue lobbies, the Park Avenue plaza, retail storefronts, numerous infrastructure upgrades, and an expansion of SL Green’s premier amenity program.
The sale of a joint venture interest in 245 Park Avenue is the largest component of the company’s financial plan for 2023, following the successful $500 million refinancing of 919 Third Avenue in April.
About SL Green Realty Corp.
SL Green Realty Corp., Manhattan’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of March 31, 2023, SL Green held interests in 60 buildings totaling 33.1 million square feet. This included ownership interests in 28.8 million square feet of Manhattan buildings and 3.4 million square feet securing debt and preferred equity investments.
About Mori Trust Co., Ltd.
Mori Trust operates 66 buildings, residences, and commercial retails, and 31 hotels and resort facilities across Japan (as of March 2023), centering on three businesses: real estate business, hotel & resort business, and investment business, as well as a wide range of businesses that enhance the value of cities. On the real estate developments side, aiming to contribute to improving the quality of engagement and communication, in 2021 Mori formulated its new office vision, DESTINATION OFFICE, in order to support the creation of offices that attract workers. On the hotels and resorts side, Mori is building a luxury destination network in Japan of premium hotels located in prime urban and resort locations throughout the country, as part of its vision to promote Japan as a high-end tourism destination. On the investments side, in order to respond quickly to changes in the business environment which may occur in the future, Mori is actively promoting investment in a broad sense, including capital participation in various companies, business alliances, and other venture investments to ensure the growth of the Group. Aiming to create new value by thinking outside the framework of existing businesses, Mori is working on businesses in new areas. In particular, the Group is promoting the workcation business by combining know-how in the real estate business and hotels & resorts business to propose a variety of work styles and to stimulate tourism demand. In addition, Mori is focused on the importance of wellness and launched a full-fledged wellness business in 2020. For additional information, please visit www.mori-trust.co.jp/english/.
Forward Looking Statement
This press release includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, are forward-looking statements. Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially, and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “project,” “continue,” or the negative of these words, or other similar words or terms.
Forward-looking statements contained in this press release are subject to a number of risks and uncertainties, many of which are beyond our control, that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. Factors and risks to our business that could cause actual results to differ from those contained in the forward-looking statements include the risks and uncertainties described in our filings with the Securities and Exchange Commission. Except to the extent required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.
SLG – A&D