(Bloomberg)—SL Green Realty Corp. agreed to buy a tower on Manhattan’s Park Avenue in its first office acquisition since 2018.
The real estate investment trust signed a contract to purchase 450 Park Ave. for $445 million from Toronto-based Oxford Properties, according to a statement Wednesday. The the 33-story building, at the corner of 57th Street in Midtown, has 337,000 square feet (31,300 square meters) of office and retail space. Tenants include Oxford, Banco Bradesco and BDT Capital Partners. British carmaker Aston Martin plans to open its first-ever Manhattan showroom at the property.
“As the most recognizable thoroughfare in East Midtown, Park Avenue continues to attract top-tier tenants and triple-digit rents,” Harrison Sitomer, chief investment officer at SL Green, said in the statement. “We expect significant interest from joint venture partners who will capitalize this deal with us as we grow our investment-management platform.”
The deal is expected to close in the second quarter. SL Green will invest capital in the building to develop new amenities and services for tenants, the REIT said.
SL Green opened its newest tower, One Vanderbilt, near Grand Central Terminal, in September 2020, soon after pandemic lockdowns emptied New York’s skyscrapers. The company has been focused on leasing up that building and its redevelopment of One Madison in the Flatiron district.
Investor demand has been growing for offices in New York amid an uptick in leasing by finance and tech tenants. Much of the appetite is concentrated on new, high-quality buildings that are located near major transit hubs.
© 2022 Bloomberg L.P.