SL Green’s flight to quality continues, now that one of its middle-market midtown office buildings is in contract for $161 million.
The building at 28 West 44th Street (on “Club Row,” says the press release) will go to APF Properties and a Prudential Real Estate Investors managed fund for $448 per square foot, according to a company announcement.
SL Green acquired the 359,000-square-foot, Class B property with just a touch of Art Deco class in 2005 for $105.5 million But the city’s largest office landlord is upgrading its porfolio by selling off some of its Class B stock, including nearby 19 West 44th Street, which sold for $123 million earlier this year.
“This transaction further demonstrates SL Green’s proven ability to identify opportunities and create value in New York City office buildings,” said SL Green President Andrew Mathias in a statement.
The building was marketed by CB Richard Ellis‘ Darcy Stacom and William Shanahan. The deal is expected to close before the summer.
Meanwhile, one landlord’s Class B building is another’s investment opportunity. “We particularly like the building because it has the characteristics of a core asset,” said Berndt Perl, a principal at APF Properties, “but is trading at a price reflective of its current state as a Class B building.” APF plans to do $12 million of renovations and bring down the 13 percent vacancy rate.