SL Green Selling Assets in Deals Valued at $642.8 Million

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SL Green Realty Corp. agreed to sell Manhattan assets in two deals valued at a combined $642.8 million to help fund its acquisition of 11 Madison Ave.

The real estate investment trust is selling Tower 45, an office building just east of Times Square, for $365 million, according to a statement Monday. The buyer wasn’t disclosed. In a separate transaction, Invesco Real Estate is acquiring an 80 percent stake in 131-137 Spring St., a 73,000-square-foot (6,800-square-meter) property in Soho.

“Our intention is to fund the company’s pending acquisition of the iconic 11 Madison property through a strategic combination of property sales, joint ventures, new financing and existing property debt refinancings,” SL Green President Andrew Mathias said in the statement.

SL Green, New York’s biggest office landlord, in May agreed to buy 11 Madison Ave., the Manhattan tower that houses Credit Suisse Group AG’s U.S. headquarters, for $2.29 billion. The deal is the biggest for a single building in Manhattan since the 2008 acquisition of the General Motors Building for $2.8 billion, and the second-largest in U.S. history, according to research firm Real Capital Analytics Inc.

Last month, SL Green put a Fifth Avenue retail building that is home to the American Girl Place toy store on the market. The property may fetch about $600 million, based on nearby comparisons.

SL Green said it expects proceeds of more than $400 million from the transactions announced Monday. Both are expected to close this quarter.

The company acquired Tower 45, a 440,000-square-foot building at 120 W. 45th St., as part of its 2007 purchase of Reckson Associates, according to the statement. The building is 96 percent leased. SL Green will keep a 20 percent stake in the Soho property and will continue to manage the building.

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