SL Green Realty Corp. (SLG - Free Report) announced that it has entered into an agreement to sell the 16 Court Street office property to CIM Group, for a gross price of $171 million. The disposal transaction is expected to close in fourth-quarter 2017. CIM Group is a full service real estate and infrastructure fund manager.
The property, a 36–story 317,600 square foot office building, is located in Brooklyn, NY. SL Green bought this office space in 2007 through a joint venture for $107.5 million before gaining full ownership in 2013.
SL Green strategically improved the building by putting a renovation plan in place. In addition to other improvement, the plan included a lobby and elevator upgrade. Such transformative redevelopments helped enhance the building’s profile and attract new tenants. This building is currently 94% occupied.
This transaction is anticipated to generate approximately $164.0 million cash proceeds for SL Green. It further highlights the company’s ability to tap opportunities and unlock value in its New York City office building deals. SL Green co-chief investment officer – Isaac Zion – said, “We foresaw the demand for revitalized office product in downtown Brooklyn and are very pleased with the successful execution of our business plan."
SL Green is New York City's largest commercial landlord, which primarily acquires, manages, develops and leases commercial office properties in the New York Metropolitan area, especially mid-town Manhattan.
However, several big companies are choosing to resize their businesses and contain cost, which are adversely affecting the demand for office space. In addition, there is growth in supply of space for office use in the market. These challenges in the office real estate market are expected to have an adverse impact on the company’s shares which have underperformed its industry, year to date. During the period, shares of the company have lost 7%, while the industry gained 2.1%.
SL Green currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Investors can, however, consider better-ranked stocks in the REIT space like Condor Hospitality Trust, Inc. , DCT Industrial Trust Inc and Four Corners Property Trust, Inc. (FCPT - Free Report) . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Condor Hospitality Trust and DCT Industrial Trust have long-term growth rates of 15% and 4%, respectively.
For Four Corners Property Trust, the Zacks Consensus Estimate for full-year 2017 funds from operations (FFO) per share is $1.38, indicating a projected increase of nearly 13.4% year over year.
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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SL Green Realty Corp. (SLG - Free Report) announced that it has entered into an agreement to sell the 16 Court Street office property to CIM Group, for a gross price of $171 million. The disposal transaction is expected to close in fourth-quarter 2017. CIM Group is a full service real estate and infrastructure fund manager.
The property, a 36–story 317,600 square foot office building, is located in Brooklyn, NY. SL Green bought this office space in 2007 through a joint venture for $107.5 million before gaining full ownership in 2013.
SL Green strategically improved the building by putting a renovation plan in place. In addition to other improvement, the plan included a lobby and elevator upgrade. Such transformative redevelopments helped enhance the building’s profile and attract new tenants. This building is currently 94% occupied.
This transaction is anticipated to generate approximately $164.0 million cash proceeds for SL Green. It further highlights the company’s ability to tap opportunities and unlock value in its New York City office building deals. SL Green co-chief investment officer – Isaac Zion – said, “We foresaw the demand for revitalized office product in downtown Brooklyn and are very pleased with the successful execution of our business plan."
SL Green is New York City's largest commercial landlord, which primarily acquires, manages, develops and leases commercial office properties in the New York Metropolitan area, especially mid-town Manhattan.
However, several big companies are choosing to resize their businesses and contain cost, which are adversely affecting the demand for office space. In addition, there is growth in supply of space for office use in the market. These challenges in the office real estate market are expected to have an adverse impact on the company’s shares which have underperformed its industry, year to date. During the period, shares of the company have lost 7%, while the industry gained 2.1%.
SL Green currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Investors can, however, consider better-ranked stocks in the REIT space like Condor Hospitality Trust, Inc. , DCT Industrial Trust Inc and Four Corners Property Trust, Inc. (FCPT - Free Report) . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Condor Hospitality Trust and DCT Industrial Trust have long-term growth rates of 15% and 4%, respectively.
For Four Corners Property Trust, the Zacks Consensus Estimate for full-year 2017 funds from operations (FFO) per share is $1.38, indicating a projected increase of nearly 13.4% year over year.
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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