The Canada Pension Plan Investment Board (CPPIB) has agreed to sell its 45 percent stake in an office building in New York City’s Manhattan for $284 million to SL Green Realty, the real estate investment trust said Monday.
CPPIB bought its minority stake in 600 Lexington Avenue from SL Green in 2010 for $87 million, according to media reports from the time. The Toronto-based pension plan’s investment arm and SL Green repositioned the 36-story building and brought it up to 95 percent occupancy as of this month, according to a statement from SL Green.
The New York-based REIT now has complete ownership in the 303,500 square foot tower, which was built in 1985. SL Green held interests in 120 other Manhattan buildings as of September 30.
CPPIB has formed numerous other Manhattan office joint ventures with SL Green. The pension plan has a 45 percent stake in 1221 Avenue of the Americas and the same-sized interest in 10 East 53rd Street.
“We are pleased with the performance of 600 Lexington and the value that SL Green has created, as we monetize our position in this asset,” said Peter Ballon, CPPIB’s managing director, in a statement. “We look forward to continuing our relationship with SL Green, a valued partner, to pursue new investment opportunities in the New York market.”
The transaction is expected to close before the end of the year.