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SL Green to sell office properties in Valhalla, Rye Brook for $67 million

1 International Drive in Rye Brook.

SL Green Realty Corp., the Manhattan-focused publicly traded real estate investment trust, has sold off two Westchester County office properties in separate deals totaling $67 million.

The company announced April 11 that it has deals to sell its 115-117 Stevens Ave. office buildings in Valhalla and Reckson Executive Park at 1-6 International Ave. in Rye Brook to two separate buyers. The company did not disclose either buyer.

In a summary of its first quarter earnings, SL Green wrote that the Reckson Executive Park sold for $55 million. The 115-117 Stevens Ave. buildings sold for $12 million.

The deals have not officially closed yet, according to SL Green’s announcement, and no deed has been recorded in county records. 115-117 Stevens Ave. includes two office buildings comprising 178,000 square feet. Reckson Executive Park is six office buildings totaling 540,000 square feet.

SL Green owned both properties through Reckson, its suburban division acquired in a $4 billion merger with Reckson Associates Realty Corp. in 2006.

The company expects the 115-117 Stevens Ave. deal to close this quarter and the sale of Reckson Executive Park sometime later this summer.

115 Stevens Ave. in Valhalla

The office deal was a side note in the announcement from SL Green, which focused on a much larger office condominium sale in Manhattan. With its joint venture partner Ivanhoe Cambridge, SL Green said it is in contract to sell a 674,000-square-foot office condominium at 1745 Broadway in Manhattan for $633 million to an institutional client of Invesco Real Estate.

The three deals will generate about $190 million in combined net proceeds, SL Green expects, which the company said it will use toward a $1.5 billion stock repurchase program.

SL Green’s remaining properties in Westchester are the three-building The Summit office park at 100-500 Summit Lake Drive in Valhalla, and the 385,000-square-foot Reckson Metro Center at 360 Hamilton Ave. in downtown White Plains. The company also owns the seven-building Landmark Square office complex in Stamford.

The company sold two adjacent office buildings in 2016 on Grand Street in downtown White Plains for $32 million. Last year, SL Green sold 520 White Plains Road, a 180,000-square-foot office building in the Tarrytown Corporate Center, to Signature Acquisitions LLC, a New Jersey-based real estate company, for $21 million.

The buyer at Rye Brook’s Reckson Executive Park can expect residential neighbors soon. Home builder Sun Homes in the process of marketing and constructing 85 townhomes and 25 single-family homes on a lot adjacent to the office properties that Reckson had once targeted for a seventh office building.

CBRE Group, Inc. represented SL Green on the Westchester office park deals, but declined to comment on the sale Tuesday.


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