SL Green Realty Corp. (SLG - Free Report) recently announced that its trophy office tower in East Midtown in New York City —One Vanderbilt — has topped out at 1,401 feet. With this, the building’s construction is ahead of its schedule by more than three months and $100 million under budget.
Given the development project’s scale and infrastructural complexity, this is a notable foot. In fact, by reaching the full height, it is now the fourth tallest skyscraper in New York City, and Midtown’s tallest office building.
Further, the tower is anticipated to open in August 2020. Being adjacent to the Grand Central Terminal, One Vanderbilt has witnessed extremely active leasing and is currently 59% leased by top-tier global finance, law and real estate firms. In fact, the tenant roster includes names like leading private equity firm, The Carlyle Group (CG - Free Report) ; banking and investment firm, TD Securities and TD Bank; law firm, Greenberg Traurig; global German financial firms DZ and DVB Banks and publicly-traded REIT MFA Financial Inc. (MFA - Free Report) .
Additionally, tenants will enjoy a host of amenities, including a 30,000-square-foot tenant-only amenity floor with large format meeting spaces, club-style lounge and outdoor terrace. Moreover, a whopping $220 million is being invested by SL Green in private funds to upgrade the transit system, which is encouraging.
The project indicates SL Green’s commitment to sustainable development. The tower is expected to be accredited with both LEED Gold under version 4.0 and WELL certification.
Notably, SL Green enjoys premium office properties and a diverse tenant base, along with solid balance-sheet strength. With the addition of On Vanderbilt, the company will able to dominate the Ne-York city skyline. Further, the company is divesting its non-core assets, and using the proceeds to fund share buybacks and development projects. Nonetheless, intense competition from other market players limits the company’s pricing power.
SL Green currently has a Zacks Rank #3 (Hold). In addition, in the past three months, the company’s shares have declined 1.9%, as against the industry’s growth 3.4%.
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