SL Green Realty Corp Sells Residential and Retail Components of 7 Dey Street, Retains Office Real Estate Interest

SL Green Realty Corp, Manhattan's largest office real estate investment trust, announced March 16 the sale of the residential and retail components of 7 Dey Street, a mixed-use tower in Lower Manhattan's Financial District, while retaining its interest in the property's commercial office space.

The transaction represents a monetization of the residential and retail components at the 260,000-square-foot building, also known as 185 Broadway, which sits directly above the Fulton Transit Center.

Property Overview and Components

Completed in 2021, 7 Dey Street is a mixed-use tower comprising 209 rental residential units, approximately 17,000 square feet of retail space, and roughly 26,000 square feet of commercial office space.

As of mid-2023, rental rates at the building ranged from approximately $3,645 per month for studio units to $10,770 per month for two-bedroom apartments, according to available market data.

Strategic Rationale for the Disposition

The sale aligns with SL Green's stated approach of monetizing the value of the residential and retail components while retaining its office real estate interest. By divesting the residential and retail components while retaining the office portion, SL Green monetizes the value embedded in those segments without fully exiting the property.

Transaction Details

Financial terms of the transaction, including the sale price and the identity of the buyer, were not disclosed in SL Green's announcement. The deal is classified as a disposition of the residential and retail real estate interests, with SL Green retaining its equity stake in the office real estate component of the mixed-use building.

No transaction price, capitalization rate, or financing details were made available at the time of the announcement. SL Green Realty Corp trades on the New York Stock Exchange under the ticker symbol SLG.

About SL Green Realty Corp

SL Green Realty Corp is a real estate investment trust focused on acquiring, managing, and maximizing the value of Manhattan commercial properties.