SL Green sells Sixth Ave building to Spear Street for $325M

Deal values office property at more than $1,200 per square foot

SL Green Realty CEO Marc Holliday, 635-641 Sixth Avenue and Spear Street Capital managing director Zachary Resnick (SL Green, LinkedIn)
SL Green Realty CEO Marc Holliday, 635-641 Sixth Avenue and Spear Street Capital managing director Zachary Resnick (SL Green, LinkedIn)

SL Green Realty has sold 635-641 Sixth Avenue to Spear Street Capital for $325 million.

The transaction, which values the Midtown property at more than $1,200 per square foot, is expected to close in the second quarter. The Commercial Observer first reported the deal.

“New York City’s revitalization continues as does the demand for Class A office buildings,” Harrison Sitomer, an SL Green senior vice president, told the publication in a statement. He credited the sale price to “extensive repositioning and leasing efforts at the property.”

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SL Green renovated the building in 2015, giving it a new lobby, elevators and a penthouse rooftop with outdoor event space. The 267,000-square-foot property is now 94 percent leased.

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Software company Infor is the largest tenant, occupying nearly half of the building. This month The Real Deal reported that Infor renewed its 90,000-square-foot lease.

SL Green has sold a few of its properties this year. In April, the Moinian Group entered into a contract to buy the Manhattan-based real estate investment trust’s 20 percent stake in the Sky apartment tower at 605 West 42nd Street. Also that month, A&E Real Estate bought an apartment building at 400 East 57th Street.

In February, SL Green unloaded its 25 percent interest in 55 West 46th Street to a Brookfield Asset Management real estate fund.

[CO] — Sasha Jones