SL Green sheds Williamsburg commercial spaces for $32 million
The townhouses have since been sold, but the Marc Holliday-run real estate investment trust kept its stake in the commercial property in the apartment building until it signed the deal with Ethika in late December.
The company has suffered multiple blows since the pandemic started, including a failed sale of the Daily News building to Chetrit Group, a 60% drop in share prices between February and April, and an increase in residential vacancies.
Although the company closed 33 leases between July and September, it had to offer more concessions and free rents to attract tenants, the third quarter earnings report showed.
Earlier this year, the REIT announced it was launching an asset outsourcing campaign to raise more cash, improve its liquidity and invest in its share buyback program. “In the current environment, cash is king,” CFO Matthew DiLiberto told investors during a first quarter earnings call.
In May, SL Green sold half of its stake in 1 Madison to a South Korean pension fund and Hines, a real estate investment firm, for $ 500 million. By June, a deal was signed to sell its stake in Stonehenge 58, a 16-story, 126-unit building at 400 E. 58th St., for $ 62 million, generating $ 20 million in cash for the company were released.
Late last year, it was announced that its massive, Amazon-anchored Class A office building at 410 10th Ave. to be sold to 601W Cos for nearly $ 1 billion.
“While the asset was always intended as a long-term investment, the sale will enable the company to generate extraordinary profits, significantly reduce consolidated debt and generate additional liquidity for share buybacks,” said Brett Herschenfeld, general manager of SL Green in the announcement.