SL Green Sells 600 Lexington Ave. For $305M

The largest commercial landlord in New York will shrink its portfolio by one Plaza District office building.

SL Green Realty Corp. is under contract to sell 600 Lexington Ave., a 33-story, 303K SF office building at the corner of Lexington and 52nd Street. The company expects to close the $305M transaction to an undisclosed buyer in the first quarter, with net cash proceeds totaling $292M.

As part of a joint venture, SL Green purchased the steel-and-glass building with floor-to-ceiling windows from Hines in 2010 for $193M. After using a series of expiring leases to give the 32-year-old building a new lobby, elevators and internal systems, it took full ownership in 2015.

The Emery Roth & Sons-designed building's smaller floor plates support whole-floor tenants such as MKP Capital Management, Element Capital Management and law firm Hawkins Parnell Thackston & Young. It is 99% leased, with the only unit listed as available on SL Green's website being 3,292 SF on the third floor.

SL Green CEO Marc Holliday said the deal "demonstrates continued investor demand for East Midtown assets" in a statement. Among SL Green's nearby remaining holdings is the under-construction supertall office building One Vanderbilt, which it jointly owns with a Korean pension fund and Hines.

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