Sixth Avenue Tower Sale Targets $360M

Core Asset Hits Market

According to The Real Deal, SL Green has listed its 1350 Sixth Avenue office tower in Midtown Manhattan. The move advances the REIT’s $2.5B asset sale plan to reduce debt. The 600K SF building is about 80% leased today. Industry sources say the property could sell for more than $360M, or roughly $600 PSF.

Leasing Opportunity Draws Investors

The property, marketed by Darcy Stacom of StacomCRE, targets investors seeking stable occupancy and future leasing upside. Amazon’s recent relocation created some availability. However, the building’s low vacancy reduces risks seen across weaker office markets. The offering also arrives as SL Green keeps most of its portfolio relatively well leased, even as profits face pressure from higher interest costs.

Strategic Dispositions Continue

This offering is part of SL Green’s broader plan to sell more than $2B in assets amid a high-interest-rate environment. The REIT earlier sold a minority stake in 100 Park Avenue to Rockpoint for a $425M valuation. Additional Sixth Avenue and Park Avenue properties, including stakes in 245 Park Avenue and 750 Third Avenue, are also slated for disposition, with the latter planned for conversion to apartments.

Sixth Avenue Market Dynamics

Sixth Avenue, including assets like the Fisher Brothers’ 1345 Sixth Avenue, has seen robust investor interest and improving occupancy rates. Cushman & Wakefield reported a 17 percent availability rate for Sixth Avenue at the end of last year—healthier than Fifth, Madison, and the West Side corridors. Recent nearby deals indicate rising confidence, even as Midtown continues to recover from elevated vacancy.