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Is SL Green's New Deal Set to Strengthen Its Manhattan Edge?
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Key Takeaways
SL Green will buy Park Avenue Tower for $730M, expanding its Park Avenue footprint.
The tower's below-market leases offer potential income growth as the market strengthens.
SL Green sold a 5% One Vanderbilt stake to Mori, freeing capital while keeping control.
SL Green Realty Corp. (SLG - Free Report) , the leading office REIT in Manhattan, has made two strategic moves recently that signal confidence in its asset base and perhaps its future trajectory.
SL Green has agreed to acquire Park Avenue Tower at 65 East 55th Street for $730 million, with closing expected in early 2026. The 36-story, 621,824-square-foot Class A office tower is well leased at below-market rents, providing steady income and strong upside potential. By re-leasing or repricing space in a gradually firming Park Avenue corridor, SL Green aims to unlock embedded value and enhance long-term cash flow from this asset.
Located in the prime Park Avenue corridor with tight vacancy and strong demand, the acquisition strengthens SL Green’s presence in the area, complementing its existing portfolio of high-profile, marquee office buildings.
SL Green also sold an additional 5% stake in One Vanderbilt Avenue to Japan’s Mori Building Co., raising Mori’s total ownership to 16%. The transaction valued the property at $4.7 billion, matching prior valuations, and after the sale, SL Green retains 55% ownership.
One Vanderbilt is fully leased and features premium amenities, a direct connection to Grand Central Terminal, and a strong reputation among top-tier tenants. For SL Green, selling a stake of this trophy asset frees up capital while preserving majority control and participation in ongoing upside. Also, Mori’s willingness to raise its stake again signals confidence in the property and SL Green’s stewardship of such flagship assets.
Wrapping Up on SL Green
These paired moves, acquisition plus strategic monetization, suggest SL Green is not passively riding the office-market cycle but actively shaping its portfolio. The purchase of Park Avenue Tower is strategic in a sector still recovering from pandemic stress, yet the deal’s structure, which is built around leased revenue and below-market rent potential, makes it defensible. At the same time, monetizing part of the One Vanderbilt stake helps SL Green unlock liquidity without fully giving up control.
On the earnings front, SL Green reported third-quarter 2025 funds from operations (FFO) per share of $1.58, which beat the Zacks Consensus Estimate of $1.34. That’s notably higher than the $1.13 in FFO in the same quarter last year.
Over the past six months, shares of this Zacks Rank #2 (Buy) company have rallied 9.1%, outperforming the industry’s increase of 3.9%.
The Zacks Consensus Estimate for VICI Properties’ 2025 FFO per share is pegged at $2.40, suggesting a 6.19% increase year over year.
The Zacks Consensus Estimate for W.P. Carey’s 2025 FFO per share is pegged at $4.91, calling for a rise of 4.47% year over year.
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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Is SL Green's New Deal Set to Strengthen Its Manhattan Edge?
Key Takeaways
SL Green Realty Corp. (SLG - Free Report) , the leading office REIT in Manhattan, has made two strategic moves recently that signal confidence in its asset base and perhaps its future trajectory.
SL Green has agreed to acquire Park Avenue Tower at 65 East 55th Street for $730 million, with closing expected in early 2026. The 36-story, 621,824-square-foot Class A office tower is well leased at below-market rents, providing steady income and strong upside potential. By re-leasing or repricing space in a gradually firming Park Avenue corridor, SL Green aims to unlock embedded value and enhance long-term cash flow from this asset.
Located in the prime Park Avenue corridor with tight vacancy and strong demand, the acquisition strengthens SL Green’s presence in the area, complementing its existing portfolio of high-profile, marquee office buildings.
SL Green also sold an additional 5% stake in One Vanderbilt Avenue to Japan’s Mori Building Co., raising Mori’s total ownership to 16%. The transaction valued the property at $4.7 billion, matching prior valuations, and after the sale, SL Green retains 55% ownership.
One Vanderbilt is fully leased and features premium amenities, a direct connection to Grand Central Terminal, and a strong reputation among top-tier tenants. For SL Green, selling a stake of this trophy asset frees up capital while preserving majority control and participation in ongoing upside. Also, Mori’s willingness to raise its stake again signals confidence in the property and SL Green’s stewardship of such flagship assets.
Wrapping Up on SL Green
These paired moves, acquisition plus strategic monetization, suggest SL Green is not passively riding the office-market cycle but actively shaping its portfolio. The purchase of Park Avenue Tower is strategic in a sector still recovering from pandemic stress, yet the deal’s structure, which is built around leased revenue and below-market rent potential, makes it defensible. At the same time, monetizing part of the One Vanderbilt stake helps SL Green unlock liquidity without fully giving up control.
On the earnings front, SL Green reported third-quarter 2025 funds from operations (FFO) per share of $1.58, which beat the Zacks Consensus Estimate of $1.34. That’s notably higher than the $1.13 in FFO in the same quarter last year.
Over the past six months, shares of this Zacks Rank #2 (Buy) company have rallied 9.1%, outperforming the industry’s increase of 3.9%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A couple of other top-ranked stocks from the REIT sector are VICI Properties (VICI - Free Report) and W.P. Carey (WPC - 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 VICI Properties’ 2025 FFO per share is pegged at $2.40, suggesting a 6.19% increase year over year.
The Zacks Consensus Estimate for W.P. Carey’s 2025 FFO per share is pegged at $4.91, calling for a rise of 4.47% year over year.
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.