{"id":4279,"date":"2025-10-16T01:04:17","date_gmt":"2025-10-16T01:04:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/4279\/"},"modified":"2025-10-16T01:04:17","modified_gmt":"2025-10-16T01:04:17","slug":"sl-green-buying-blackstones-park-avenue-tower-for-730m-sources-commercial-observer","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/4279\/","title":{"rendered":"SL Green Buying Blackstone\u2019s Park Avenue Tower for $730M: Sources \u2013 Commercial Observer"},"content":{"rendered":"

Blackstone<\/a> is officially under contract to sell Park Avenue Tower for nearly the same price the 36-story office building fetched 11 years ago.<\/p>\n

SL Green<\/a> will acquire the 622,000-square-foot property at 65 East 55th Street for $730 million, sources told Commercial Observer. Blackstone subsidiary EQ Office (now known as Perform Properties<\/a>) purchased<\/a> the Midtown Manhattan office asset for $750 million in 2014 from Shorenstein Company.<\/p>\n

SEE ALSO: Federal Realty Buys Maryland Retail Plaza for $187M<\/a><\/p>\n

Eastdil Secured\u2019s Gary Phillips and Will Silverman negotiated the latest megadeal, sources said, which went under contract yesterday.\u00a0<\/p>\n

The sale of Park Avenue Tower sale is being executed nearly a decade after EQ Office undertook a $25 million renovation project following the exit of the building\u2019s anchor tenant, law firm Paul Hastings, which relocated to the MetLife Building, as CO reported<\/a> at the time.\u00a0<\/p>\n

Perform Properties inked a 17,458-square-foot lease from Reinsurance Group of America in August, to house the St. Louis-based global reinsurance firm\u2019s first New York office, CO previously reported<\/a>. Other tenants include Panagram Structured Asset Management and Quilvest Capital Partners.<\/p>\n

Just last month, SL Green also snapped up 346 Madison Avenue and 11 East 44th Street for $160 million just last month<\/a>.\u00a0<\/p>\n

\u201cThis acquisition will deliver sustainable cash flow and provide long-term value creation while further solidifying our commitment to being the leading owner of premier properties along Park Avenue at a time when demand has never been higher,\u201d Harrison Sitomer, chief investment officer at SL Green, said in a statement announcing the Park Avenue Tower aquisition. \u201cPark Avenue Tower is strategically located and well-leased at below-market rents, offering significant upside as vacancy in the Park Avenue corridor continues to trend below six percent.\u201d<\/p>\n

A Blackstone spokesperson said the property in the deal was part of a fund that is 95 percent realized and generated a 14 percent internal rate of return. The transaction also reflects a strong rebound in the Midtown Manhattan office market and priced higher than comparison transactions in the area, according to Blackstone.<\/p>\n

\u201cThis successful exit from a substantially realized fund capitalizes on the strong rebound in demand for office in Midtown Manhattan and demonstrates the momentum for recently renovated office assets in prime submarkets,\u201d the Blackstone spokesperson said in a statement.<\/p>\n

Eastdil Secured did not immediately return a requests for comment.\u00a0<\/p>\n

Andrew Coen can be reached at acoen@commercialobserver.com<\/a>.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Blackstone is officially under contract to sell Park Avenue Tower for nearly the same price the 36-story office…\n","protected":false},"author":2,"featured_media":4280,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[4460,4461,75,84,83,9,24,63,4192,4462],"class_list":{"0":"post-4279","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-manhattan","8":"tag-gary-phillips","9":"tag-harrison-sitomer","10":"tag-manhattan","11":"tag-manhattan-headlines","12":"tag-manhattan-news","13":"tag-new-york","14":"tag-new-york-city","15":"tag-nyc","16":"tag-park-avenue-tower","17":"tag-will-silverman"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/4279","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=4279"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/4279\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/4280"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=4279"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=4279"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=4279"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}