SL Green Weighs Selling 'News Building' In Midtown For As Much As $1B

220 East 42Nd St.

SL Green’s office tower on East 42nd Street could be the latest trophy asset in the city to hit the market.

The REIT has asked brokers to pitch to market the “News Building” at 220 East 42nd St., The Real Deal reports, citing unnamed sources. The asking price could be between $900M and $1B, sources with knowledge of the pricing guidance told the publication. Cushman & Wakefield, CBRE, JLL and Newmark Knight Frank all offered pitches.

The Art Deco building is 476 feet tall and was built to serve as the New York Daily News' headquarters in 1920. SL Green paid $265M for it in 2003. The Visiting Nurse Service of New York closed on its 30-year leasehold condominium there last year, paying $91.8M. The healthcare nonprofit took 308K SF in the building as part of the transaction, which was announced in 2016.

SL Green, which is developing the One Vanderbilt supertall office tower in Midtown East, has been among the city's most active deal-makers in recent months.

Last month, it announced it reached a deal to buy a majority stake in 460 West 34th St. — previously known as the Master Printers Building — in Hudson Yards from the Kaufman Organization, in a deal that values the building at $440M.

Last year, it reached an agreement to invest $148.2M in 245 Park Ave., for which HNA Group paid $2.2B back in 2017. It has also sold several holdings in the city in the last year, including major stakes in office buildings at 3 Columbus Circle and 1745 Broadway, as it executes a campaign to buy back stocks and clean up its balance sheet.

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