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SL Green Looks To Sell 30% Stake In 1515 Broadway

1515 Broadway in Times Square, New York

SL Green has plans to recapitalize 1515 Broadway in a deal that could put a close to $2B price tag on the 54-story Times Square office building.

The landlord has hired Doug Harmon and Adam Spies, a pair of mega-brokers who made a splash in the fall when they left Eastdil Secured for Cushman & Wakefield, to market what Crain’s reports will likely be a minority stake in the 1.75M SF building.

SL Green may be entering a bit of a selling spree, with this latest effort following a recent sale of a 29% interest in the massive One Vanderbilt office tower it is developing next to Grand Central Terminal. Co-developer Hines bought a less than 2% stake in that property, with the balance of the stake selling to a Korean pension fund. Foreign investors would also figure to be key bidders in SL Green's latest equity offering.

Leasing at the building is not an issue, with Viacom, which has 1.6M SF in the building, coasting through 2030 on a renewal that closed in 2012. The sale is aimed at raising capital for new investments, according to Crain's, including possible distress deals with residential developers who cannot get construction loans amid concerns over an oversupplied residential market. [Crain’s]