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In a Q3 earnings call yesterday, SL Green CEO Marc Holliday spoke on the REIT's series of recent asset sales (nine, total), which raised $1.7B to neutralize the hefty acquisition of 11 Madison Ave.
"A designed and delivered strategy," he called it, reports The Real Deal. The nine transactions consisted of 12 properties and $670M in net proceeds, as the company seeks to "reduce overall leverage and backhand the closing" of that record deal.
With a 3.3% average cap rate, the sales also go to show that Manhattan real estate assets are red hot, he says—especially to foreign buyers, like in Ivanhoé Cambridge's involvement with the $5.3B Stuyvesant Town and Peter Cooper Village.
Calling the market in New York "very much alive," he described asset sales as "the absolutely best form of capital" to fund that investment pipeline.
As New York's biggest landlord, SL Green has 1.4M SF of deals in the works—most of them are offices, and TAMI tenants will stay strong. [TRD]
