SL Green to Acquire 500 Park Ave Office Condo for $130M

According to Bloomberg, SL Green Realty Corp. (SLG)—New York City’s largest office landlord—has agreed to acquire the office portion of 500 Park Avenue from Morgan Stanley (MS) for $130M. 

Deal Details

The nine-figure transaction includes 201.4 KSF of office and retail space located at the intersection of Park Avenue and 59th Street. 

The deal is a notable sale of an asset that has not traded hands in over 40 years. Built in 1960 and renovated in 2019, the property boasts a 94.5% occupancy rate, with tenants such as SLR Capital Partners and designer Vera Wang contributing to its stable cash flow and potential for rent growth.

Standing Out

Park Avenue continues to attract investors due to its low vacancy rates and reputation as a “fortress corridor” for high-performing office properties. 

SL Green’s Chief Investment Officer, Harrison Sitomer, highlighted the corridor’s ability to command triple-digit rents and house top-tier tenants. Recent transactions on Park Avenue include:

• JPMorgan Chase (JPM) acquired 250 Park Avenue for over $300M earlier this year.
• Citadel founder Ken Griffin is moving forward with a 62-story office skyscraper at 350 Park Avenue.

One of Many

The acquisition of 500 Park Avenue is just the latest in a series of deals that showcase SL Green’s ongoing portfolio optimization strategy.

Last week, the company sold a stake in One Vanderbilt, its fully leased trophy office tower near Grand Central Terminal, to Japan’s Mori Building Co. It also sold a share in 245 Park Avenue last year to another Japanese firm.

Market Outlook

As New York City’s office market grapples with broader challenges, prime properties in prestigious locations like Park Avenue continue to perform well. 

SL Green’s acquisition of 500 Park Avenue signals sustained confidence in the corridor’s long-term value and growth potential.