SL Green Realty Corp. (NYSE:SLG), Manhattan’s largest office landlord, announced Thursday that it has closed the acquisition of Park Avenue Tower for $730 million.
Located at 65 East 55th Street, the 36-story Class A office building spans 621,824 square feet and represents a significant addition to the company’s premier Midtown portfolio.
The purchase was supported by a new five-year, fixed-rate $480 million CMBS mortgage.
Arranged by Wells Fargo with participation from JPMorgan Chase and Bank of America, the financing carries a stated coupon of 5.30%, which the company successfully hedged to an effective rate of 5.25%.
The acquisition comes at a time when SL Green is aggressively reshaping its balance sheet.
Management noted that this transaction, alongside the fresh financing and a recent sale of a joint venture interest in 100 Park Avenue, serves as a cornerstone of its 2026 capital markets strategy.
By recycling capital from older assets into high-spec trophy buildings, the REIT is positioning itself to capture the ongoing "flight to quality" in the New York office sector.
Originally completed in 1986, Park Avenue Tower has recently undergone extensive upgrades to its plaza, lobby, and amenity spaces.
These improvements, combined with new high-end prebuilt suites, were specifically designed to attract hedge funds and boutique financial firms seeking premium space in the Plaza District.
With this move, SL Green reinforces its dominance on the Park Avenue corridor, a submarket that has remained resilient despite broader fluctuations in the commercial real estate market.