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SL Green Expands Premier Portfolio With 1552-1560 Broadway Assets

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Key Takeaways

  • SL Green and its JV acquired $219.5M debt claims on 1552 and 1560 Broadway for $63M.
  • The JV finalized a ground lease and a sign bracing deal at 1560 Broadway through 2074.
  • 1552 Broadway is leased short-term to a retailer while awaiting a long-term credit tenant.

SL Green (SLG - Free Report) recently announced that, along with its joint venture (JV) partner, the company has taken over the debt encumbering the fee interest at 1552 Broadway and the leasehold interest at 1560 Broadway for $63 million. The total debt claim amounted to $219.5 million, including $26.4 million of accrued and unpaid interest.

The loan purchase resets the basis at favorable terms for the joint venture. After completing the purchase, the JV finalized a long-term ground lease and a sign bracing agreement with GFP Real Estate and Benenson Capital Partners for 1560 Broadway, extending through 2074.

SL Green further pointed out that 1552 Broadway has been leased to an apparel and merchandise retailer on an interim basis till a long-term credit tenant is identified.

Located at the Times Square bow tie, these premier retail assets will aid long-term value accretion for SLG through future cash flows.

SLG: In a Nutshell

The addition of the above two assets will further enhance SLG’s high-quality portfolio. The company is well-poised for growth, given tenants’ solid demand for premier office spaces with class-apart amenities. With supply pressures easing and people returning to offices, SLG is witnessing healthy leasing activity.

Since the beginning of the year through July 16, 2025, SL Green has signed Manhattan office leases aggregating 1.3 million square feet. Moreover, with an encouraging office leasing pipeline, the company remains well-positioned to boost top-line growth and navigate through any challenging environment.

Over the past month, shares of this Zacks Rank #2 (Buy) office REIT have risen 9.4% against the industry’s decline of 1%.

Analysts seem bullish on SLG, with its Zacks Consensus Estimate for 2025 funds from operations per share being revised northward by 10.1% over the past two months to $6.21.

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Other Stocks to Consider

Some other top-ranked stocks from the broader REIT sector are Welltower (WELL - Free Report) and Stag Industrial (STAG - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for WELL’s 2025 FFO per share has been raised marginally over the past month to $5.07.

The consensus estimate for STAG’s current-year FFO per share has moved marginally northward in the past two months to $2.50.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.


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