Allianz Real Estate, a subsidiary of Allianz Group, is set to invest approximately $416 million cash proceeds to SL Green for 1515 Broadway. According to the contract, SL Green Realty Corp will sell 43% interest for the 1515 Broadway building. The transaction values the property of 1.86 million-square-foot, Class-A Times Square office building at $1.950 billion or $1045 per square foot and approximately 70% of the transaction is to be closed by November 30,2017. However, the balance of the transaction is set to be closed in the first quarter of 2018 only. SL Green will realize cash proceeds after the final closing of around $416 million.
According to SL Green’s Co-Chief Investment Officer, Isaac Zion:
“1515 Broadway has been an extraordinary investment for SL Green and we are delighted to collaborate with our new joint venture partner, Allianz, in one of New York City’s truly special buildings. We look forward to a long-term, mutually beneficial relationship with Allianz on 1515 Broadway and to future investment opportunities together.”
SL Green’s President, Andrew Mathias had to say the following about the contract:
“This transaction speaks to the continued strong interest from overseas investors in New York City office assets as well as the strength of the Times Square office and retail market.”
Allianz Real Estate of America’s Chief Executive Officer, Christoph Donner, added the following about the deal:
“Allianz’s investment in 1515 Broadway represents a unique and exciting opportunity to partner with SL Green and add an attractive trophy asset, with significant upside in the coming years, to our growing portfolio in New York City”.
1515 Broadway was purchased by SL Green in 2002 as a part of joint venture and acquired full control of the building in 2011. In 2012, it redeveloped the property that included the repositioning of all retail space, a new lobby, new elevators, revitalized building systems, and new state of the art signage. Viacom has signed a long term lease renewal which is set to last till 2031 to occupy the building’s office space.
1515 Broadway is located in the heart of New York’s Times Square between 44th and 45 street. The building is 57 story and is currently 98% under lease which includes tenants such as Sketchers, Swatch, Oakley, Kiko Milano, Line Friends and Minskoff Theater ( host to the The Lion King – the highest grossing show on Broadway)
The transaction was represented by Doug Harmon and Adam Spies of Cushman and Wakefield for SL Green.
About SL Green Realty Corp.
An S&P 500 company that holds interest in 118 Manhattan building totaling 47.8 million square feet as of September 30, 2017, SL Green Realty Corp is the largest office landlord in New York City. It is a , is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. 27.5 million square feet are of included ownership interest of Manhattan building and debt and preferred equity investments secured by 20.3 million square feet of buildings.
About Allianz Real Estate
Headquartered in Munich and Paris, Allianz Real Estate has approximately 53 billion euros ($62.9 billion) in assets under management. It is a leading international real estate investor and asset manager. It develops and executes investment strategies and worldwide tailored portfolio that includes direct as well as indirect investments and real estate loans on behalf of the Allianz companies. It is spread across Germany, France, Switzerland, Italy, Spain, USA and Singapore.