SL Green to Acquire 304 Park Ave South for $135M

In a deal expected to close on June 1, SL Green Realty Corp. announced this week that it had entered into an agreement to acquire 304 Park Avenue South for $135 million from a partnership headed by David Berley, Chairman of Walter & Samuels Inc. The purchase price of the 215,000 square foot mixed-use office and retail building equals roughly $628 per square foot. Walter & Samuels represented the seller in the transaction, with Eastdil Secured serving as advisor.

304 Park Avenue South is located on the southwest corner of Park Avenue South and 23rd Street directly across the street from SL Green's One Madison Avenue in the Midtown South sub-district. The property is currently 95% leased to major tenants including IMG Models, H&R Block, Bath & Body Works and Time Warner Entertainment.

Andrew Mathias, President of SL Green, commented, "We've been monitoring Midtown South carefully looking for acquisition opportunities, however the consistently tightening vacancy rates and substantial lease activity in the area have driven cap rates on marketed deals below our target investment thresholds. This unique opportunity came to us because of the attractiveness of our Operating Partnership Units and our relationship with the seller."

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