SL Green Sells Land Under New York's Lipstick Building for $453M

Wikimedia/Marlith

NYC's biggest landlord, SL Green, is selling its interest in the land under Manhattan's iconic Lipstick Building for $453M in a deal that will net $45M, the REIT said Tuesday.

Slated to close in Q4, the deal was executed at a 3.8% cap rate for the unidentified buyer, the latest in a series of sales by SL Green. Proceeds will go towards funding SL Green's pricey 11 Madison Ave purchase.

The 453-foot tower, whose elliptical shape and red exterior resembles a lipstick tube, is owned by a group that includes the Argentinean IRSA Inversions y Representaciones SA. This company and others lease the ground from landowner parties such as SL Green.

A 2007 joint venture gave SL Green its first interest in the land, valued at $317M at the time. It gained the rest of its share three years later, with a valuation of $352M. [Bloomberg]

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