A joint venture between JPMorgan Asset Management and SL Green Realty has reached an agreement to sell a Queens office tower completely leased to Citigroup to a venture between private real estate investor David Werner and Waterbridge Capital owner Joel Schreiber for $480 million, according to data from Real Capital Analytics.
A statement from New York-based SL Green reveals that the sale of One Court Square includes $315 million of existing debt, which will be assumed by the building's new owners. SL Green anticipates that it will realise $42.8 million in net proceeds from the transaction. Eastdil Secured represented the sellers in the pending transaction.
SL Green acquired its stake in the 1.4 million-square-foot office building in 2007 through its $6 billion acquisition of Reckson Associates Realty. SL Green and JPMorgan owned the asset in a 30:70 split.
Built in 1989, One Court Square consists of a 50-story tower and a group of five-story low-rise buildings connected via a glass rotunda. Sitting on a 1.45-acre site in Long Island City, the property is the tallest tower in New York outside Manhattan.
The sale marks SL Green's third disposition agreement within the last three weeks. The firm agreed to trade its leased fee interest in the 193,000-square-foot office building at 292 Madison Avenue for $85 million and sell two retail condominium units totaling 9,860 square feet at 141 Fifth Avenue for $46 million.
In addition, SL Green formed a joint venture with the Moinian Group to recapitalise a 1.1 million-square-foot office property at 180 Maiden Lane in Manhattan. In exchange for a 49.9 percent stake, SL Green offered $41 million in cash and operating partnership units valued at $31.7 million.