SL Green Marketing Midtown NY Building

S.L. Green is shopping a Midtown Manhattan office building that could attract bids of roughly $150 million.

The 360,000-square-foot property, at 28 West 44th Street, is 93% leased, in line with the average in the Midtown submarket.

Bids are expected to be in the vicinity of $415/sf, or $149 million, according to market players. At that price, the buyer's initial annual yield would be roughly 6%. CB Richard Ellis has the listing.

A buyer might be able to increase income by raising rents as leases roll over. At least 100,000 sf leased in late 2004 and early 2005 is believed to be rolling over within five years. Asking rents when those leases were signed ranged up to $42/sf, well below the current rate of $56/sf in Midtown.

SL Green, a New York REIT, acquired the building in May 2005 for $105 million, or $292/sf, from Transwestern Investment, a Chicago fund shop.

The 22-story property, called the National Association Building, was constructed in 1919. It is midway between Fifth and Sixth Avenues, two blocks west of Grand Central Terminal and two blocks north of Bryant Park. It underwent a $4 million renovation in the early 2000s that updated the entrance, lobby and corridors.

This is SL Green's second recent listing on West 44th Street. In September, it sold the 262,000-sf Berkeley Building, at 19 West 44th, to German investor Deka Immobilien for $123.2 million, or $470/sf. CB also brokered that deal.

Market players said that SL Green decided to break up the listings to maximize interest in the individual offerings.

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