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SL Green Closes Acquisition of Park Avenue Tower

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NEW YORK, Jan. 15, 2026 (GLOBE NEWSWIRE) -- SL Green Realty Corp. (NYSE:SLG), Manhattan's largest of...

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AI Summary

SLG acquires Park Avenue Tower for $730 million. Acquisition financed by a $480 million mortgage at 5.25% rate. Park Avenue Tower is a prime office space with top-notch amenities. SLG is executing its 2026 capital markets strategy effectively. Recent infrastructure upgrades enhance the tower's appeal to tenants.

Sentiment Rationale

The acquisition strengthens SLG's portfolio in a prime submarket, likely increasing investor confidence. Similar acquisitions in the past have led to price appreciation in response to strategic expansion.

Trading Thesis

The long-term impact is expected as enhanced property value and tenant attraction strengthen SLG’s market position. Historical trends show improved performance following strategic investments.

Market-Moving

  • SLG acquires Park Avenue Tower for $730 million.
  • Acquisition financed by a $480 million mortgage at 5.25% rate.
  • Park Avenue Tower is a prime office space with top-notch amenities.

Key Facts

  • SLG acquires Park Avenue Tower for $730 million.
  • Acquisition financed by a $480 million mortgage at 5.25% rate.
  • Park Avenue Tower is a prime office space with top-notch amenities.
  • SLG is executing its 2026 capital markets strategy effectively.
  • Recent infrastructure upgrades enhance the tower's appeal to tenants.

Companies Mentioned

  • WFC (WFC)
  • JPM (JPM)
  • BAC (BAC)

Corporate Developments

The article discusses a major acquisition that directly impacts SLG's financial performance and market positioning. The substantial financing and upgrades make the news highly relevant for investors.

SL Green Realty Corp. Closes Acquisition of Park Avenue Tower

On January 15, 2026, SL Green Realty Corp. (NYSE: SLG), Manhattan’s largest office landlord, announced the successful closing of its acquisition of Park Avenue Tower, located at 65 East 55th Street, for $730.0 million. This strategic acquisition will enhance SL Green’s already substantial presence in one of the strongest office submarkets in the United States.

Financing Details for the Acquisition

The acquisition of Park Avenue Tower has been financed through a new five-year, fixed-rate mortgage amounting to $480.0 million, executed in the CMBS market with Wells Fargo as a lead underwriter, supported by JP Morgan and Bank of America. The mortgage features a stated interest rate of 5.30%, which SL Green has effectively hedged to 5.25%.

Harrison Sitomer, Chief Investment Officer at SL Green, emphasized the significance of this transaction: “Closing on Park Avenue Tower with best-in-class financing fortifies our substantial presence on Park Avenue.” He added that this acquisition, along with the recent sale of a joint venture interest in 100 Park Avenue, marks a pivotal step in their 2026 capital markets strategy.

Overview of Park Avenue Tower

Park Avenue Tower is a premier 36-story office building spanning 621,824 square feet, designed by the renowned architect Helmut Jahn. Completed in 1986, the building stands out in the submarket due to its modern infrastructure and newly upgraded interiors.

Recent enhancements include:

  • A reimagined plaza designed by MdeAS Architects
  • High-end prebuilt office suites created by Gensler
  • A world-class lobby and amenities crafted by Gonzalez Architects

These upgrades contribute significantly to the tenant experience, making Park Avenue Tower an attractive option for top financial institutions and hedge funds.

About SL Green Realty Corp.

SL Green Realty Corp. is a fully integrated real estate investment trust (REIT) focused on acquiring, managing, and maximizing the value of commercial properties in Manhattan. As of September 30, 2025, SL Green owned interests in 53 buildings totaling 30.7 million square feet, including 27.1 million square feet of Manhattan properties and 2.7 million square feet securing debt and preferred equity investments.

Forward-Looking Statements

This announcement contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect SL Green’s expectations and beliefs concerning future events and developments, which may not be realized. Investors are cautioned against placing undue reliance on these statements, as actual results may vary significantly due to various risks and uncertainties.

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