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SL Green has sold a Fifth Avenue office building it took control of via foreclosure last summer.
The real estate investment trust sold 590 Fifth Ave. for $103M, it announced in a release Thursday. The 103K SF midblock building is partially leased to tenants like Columbia Medical Center and AdvantageCare Physicians.
Kassin Sabbagh Realty’s Albert Sultan and Morris Sabbagh brokered the deal for both the buyer and the seller. The sale, which closed within two weeks, “represents the return of the investment sales market,” Sultan said in a statement.
KSR leased retail space in the building to a tenant before the sale, but it declined to disclose the tenant. Effy Jewelry, run by Effy Hematian, bought the building, a source confirmed to Bisnow.
“Closing on the sale of 590 Fifth Avenue at a price of $1K per SF demonstrates the continued demand for well-located New York City office and retail properties,” SL Green Executive Vice President Harrison Sitomer said in a statement. “This profitable transaction is the latest step in the successful execution of our 2021 business plan as we remain on track to meet or exceed our stated goals for the year.”
Effy Jewelry has been buying up Midtown assets for years — it paid The Chetrit Group $92M in 2019 for 145 West 45th St. and it bought a 12-story Garment District building for $54M in 2016.
SL Green took ownership of 590 Fifth after foreclosing on its previous owner, Thor Equities, after Thor defaulted on a $25M mezzanine loan. SL Green agreed to pay the remaining $82M of principal on the building's senior debt with Wells Fargo when it acquired the building in October 2020, according to city property records. It was valued at $84.5M at the time, property records show.
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