We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SL Green (SLG) Boosts Portfolio, Acquires 245 Park Avenue
Read MoreHide Full Article
SL Green Realty Corp. (SLG - Free Report) announced that it closed the acquisition of 245 Park Avenue — a 44-story, Class A office property in New York City. The move is expected to enhance SLG’s premier portfolio in the Grand Central/Park Avenue submarket.
245 Park Avenue, one of the largest buildings on Park Avenue, covers the entire block between 46th and 47th Streets, and has direct access to Grand Central Terminal. Given the advantageous location of the property, it is expected to attract tenants.
The in-place mortgage and mezzanine loans, summing to $1.768 billion, will continue to be applicable for the 1967-built property. The loans are set to mature in June 2027, with a combined fixed rate of 4.30%, on existing terms.
Earlier, SL Green had a preferred equity investment in the 1.8-million-square-feet(sq-ft) property.
Per Harrison Sitomer, chief investment officer of SLG, “The property represents the next major development project for SL Green following the extraordinary success of One Vanderbilt Avenue and completion of One Madison Avenue that continues to be on-budget and on-time for delivery in November 2023.”
SL Green, Manhattan’s largest office landlord, has a mono-market strategy focus, with an enviable footprint in the large and high-barrier to entry New York real estate market. The ongoing recovery in the United States’ office market positions the company well for growth.
SL Green has been following an opportunistic investment policy to enhance its overall portfolio quality. This includes divesting its mature and non-core assets, and using the proceeds to fund development projects and share buybacks. Such match-funding initiatives highlight the company’s prudent capital-management practices and relieve the pressure off its balance sheet.
With its acquisition move, SL Green announced that it entered an agreement to dispose of its 414,317-sq-ft vacant office leasehold condominium units at 885 Third Avenue, popularly known as “The Lipstick Building,” to Memorial Sloan Kettering Cancer Center.
The transaction is expected to be completed in the fourth quarter of 2022, subject to the satisfaction of closing conditions, for a total consideration of $300.4 million.
SL Green will continue to hold on to the remaining 218,796 square feet of the building, which is presently 91.7% leased.
The Zacks Rank #3 (Hold) stock has gained 11.3% in the month-to-date period, outperforming the industry’s rally of 3.8%.
The Zacks Consensus Estimate for Prologis’ current-year FFO per share has moved marginally north in the past two months to $5.17.
The Zacks Consensus Estimate for Extra Space Storage’s ongoing year’s FFO per share has been raised 1.9% over the past month to $8.46.
The Zacks Consensus Estimate for Host Hotels & Resorts’ 2022 FFO per share has moved 2.3% upward in the past week to $1.79.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
SL Green (SLG) Boosts Portfolio, Acquires 245 Park Avenue
SL Green Realty Corp. (SLG - Free Report) announced that it closed the acquisition of 245 Park Avenue — a 44-story, Class A office property in New York City. The move is expected to enhance SLG’s premier portfolio in the Grand Central/Park Avenue submarket.
245 Park Avenue, one of the largest buildings on Park Avenue, covers the entire block between 46th and 47th Streets, and has direct access to Grand Central Terminal. Given the advantageous location of the property, it is expected to attract tenants.
The in-place mortgage and mezzanine loans, summing to $1.768 billion, will continue to be applicable for the 1967-built property. The loans are set to mature in June 2027, with a combined fixed rate of 4.30%, on existing terms.
Earlier, SL Green had a preferred equity investment in the 1.8-million-square-feet(sq-ft) property.
Per Harrison Sitomer, chief investment officer of SLG, “The property represents the next major development project for SL Green following the extraordinary success of One Vanderbilt Avenue and completion of One Madison Avenue that continues to be on-budget and on-time for delivery in November 2023.”
SL Green, Manhattan’s largest office landlord, has a mono-market strategy focus, with an enviable footprint in the large and high-barrier to entry New York real estate market. The ongoing recovery in the United States’ office market positions the company well for growth.
SL Green has been following an opportunistic investment policy to enhance its overall portfolio quality. This includes divesting its mature and non-core assets, and using the proceeds to fund development projects and share buybacks. Such match-funding initiatives highlight the company’s prudent capital-management practices and relieve the pressure off its balance sheet.
With its acquisition move, SL Green announced that it entered an agreement to dispose of its 414,317-sq-ft vacant office leasehold condominium units at 885 Third Avenue, popularly known as “The Lipstick Building,” to Memorial Sloan Kettering Cancer Center.
The transaction is expected to be completed in the fourth quarter of 2022, subject to the satisfaction of closing conditions, for a total consideration of $300.4 million.
SL Green will continue to hold on to the remaining 218,796 square feet of the building, which is presently 91.7% leased.
The Zacks Rank #3 (Hold) stock has gained 11.3% in the month-to-date period, outperforming the industry’s rally of 3.8%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Prologis (PLD - Free Report) , Extra Space Storage (EXR - Free Report) and Host Hotels & Resorts (HST - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
The Zacks Consensus Estimate for Prologis’ current-year FFO per share has moved marginally north in the past two months to $5.17.
The Zacks Consensus Estimate for Extra Space Storage’s ongoing year’s FFO per share has been raised 1.9% over the past month to $8.46.
The Zacks Consensus Estimate for Host Hotels & Resorts’ 2022 FFO per share has moved 2.3% upward in the past week to $1.79.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.