Marc Holliday’s company wants to vacate nine properties in the Crain’s neighborhood reported. The revelation came during a recent investor presentation, where Chief Financial Officer Matthew DiLiberto said the company was “selling assets.” [and] to lose [income] to fight against excessively high interest rates.”
That doesn’t necessarily mean SL Green is done buying. While the company plans to sell about $2.5 billion in real estate, the company also plans to make $1 billion in acquisitions, according to executives.
“We are ready to deploy our $1.3 billion debt fund, have a target of more than $1 billion in acquisitions and are even considering share buybacks,” the company said in a statement.
Among the properties SL Green offers for sale:
- 1350 Sixth Avenue, a 600,000-square-foot office building in the Plaza District.
- 245 Park Avenue, a 1.7 million square foot property on a famous corridor. SL Green acquired the property out of bankruptcy in 2022 and sold 50 percent of its equity to Japanese developer Mori Trust in 2023 in a deal that valued the tower at $2 billion. This time, SL Green is aiming for a sale of 25 percent of the shares.
- 750 Third Avenue, which is currently being converted into 680 apartments. SL Green would like to transfer a 65 percent interest in the redevelopment.
The timing for SL Green could prove rich as Manhattan’s office market soars above the rest of the country. According to Moody’s, Manhattan’s office vacancy rate is 13.1 percent, compared to 19.3 percent nationwide.
But SL Green, which is said to have $7 billion in debt, has seen its share price fall by a third this year. There are concerns that the real estate investment trust could cut its dividend next year because the cash flow for the lessor decreases.
— Holden Walter Warner
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