SL Green got the ball rolling with its plan to sell $2.5 billion worth of property.
The REIT sold a minority stake in the office building at 100 Park Avenue to Rockpoint at a $425 million valuation, The Real Deal has learned.
The Marc Holliday-led company bought a 49 percent stake in the 900,000-square-foot building from its partner Prudential in December 2024, at a $360 million valuation, and then injected some of its own equity into the property before flipping the interest to Rockpoint before the start of the new year.
The 1940s-era office building just south of Grand Central is nearly fully leased at 95 percent occupancy, and both partners will pony up additional money to cover leasing costs. SL Green recently signed the restructuring and turnaround firm Alvarez & Marsal to 220,000 square feet at the building, and the costs related to that lease are starting to kick in.
Once all the new capital is accounted for, the property is expected to be valued at a basis of $500 million.
Representatives for SL Green and Rockpoint did not immediately respond to requests for comment. A Newmark team led by Adam Spies arranged the sale.
The deal is the latest sign of strength for Manhattan’s office market, which for 2025 is expected to record its best year since 2019 as companies brought their employees back to the office in full force.
SL Green has taken notice of the demand; at its investor conference last month the company said it plans to sell $2.5 billion worth of property, in part to help offset higher interest rates.
The REIT is “selling assets [and] losing [income] to fight against interest rates that are too high,” Chief Financial Officer Matthew DiLiberto said at the conference.
SL Green also intends to be busy on the buy side, with about $1 billion worth of acquisitions planned for 2026.
Boston-based Rockpoint, led by co-CEOs Tom Gilbane and Aric Shalev, recently inked a deal to sell its 50-story One Dag Hammarskjöld Plaza tower to David Werner for $270 million.
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