SL Green Realty Corp. closed on the purchase of its joint‑venture partners’ 39.48% stake in 800 Third Avenue for $5.1 million, giving the company 100% ownership of the 41‑story office tower located between 49th and 50th Streets on Manhattan’s east side. The transaction, completed on 2025‑12‑05, consolidates SL Green’s control of a prime Midtown asset that has been a cornerstone of its portfolio since the original investment in 2006.
The company also secured a modification of its existing $177 million mortgage, extending the maturity from February 2026 to February 2031. The new terms keep the interest rate at 1.70% over Term SOFR, with a fixed rate of 5.03% from February 2026 through February 2029. By pushing the debt profile out five years, SL Green reduces near‑term refinancing risk while preserving accretive terms that support its long‑term capital structure.
SL Green’s Q3 2025 earnings underscored the company’s resilience amid a challenging office market. Earnings per share rose to $0.34, beating the consensus of $0.00 by $0.34—a 340% beat—thanks to disciplined cost management and a rebound in leasing activity. Revenue reached $244.82 million, up 7.2% from $228.00 million in Q3 2024, driven by stronger demand in its core Midtown office segment and a modest uptick in investment income. Funds from operations climbed to $1.58 per share, up from $1.13 in the prior year, reflecting improved operating leverage and a favorable mix of high‑margin leasing income.
Analysts noted that while the transaction signals strategic confidence, the broader market remains cautious. Concerns about SL Green’s high debt‑to‑equity ratio and declining margins temper enthusiasm, even as the company’s leasing momentum and the potential upside from residential conversions in the Midtown corridor provide tailwinds. The mortgage extension, in particular, is viewed as a prudent move to lock in low rates and extend the debt horizon during a period of rising interest rates.
The acquisition and refinancing reinforce SL Green’s strategy of consolidating well‑located Midtown assets and managing its debt profile. Full ownership of 800 Third Avenue positions the company to capture upside from the corridor’s residential‑to‑office conversions, while the extended maturity reduces refinancing risk and supports future capital allocation flexibility. Together, these moves strengthen SL Green’s balance sheet and portfolio positioning as it navigates a volatile office market.
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