SL Green Closes $226 Million SoHo Building Sale

A SoHo address with Balenciaga downstairs just turned into a very large check. SL Green Realty closed the sale of 110 Greene Street for $226.0 million in November, according to its quarterly report filed Nov. 5 ^[1].

The buyer was Natora Group, and it was the most expensive commercial deal to reach city property records in the day ending Friday afternoon, The Real Deal reported ^[2]. The building rises 13 stories over 223,000 square feet, and Balenciaga is the main retail tenant ^[2].

A busy day in city records

• New York City logged 187 property records worth a combined $734 million in the 24 hours before 3:30 p.m. Friday, The Real Deal counted ^[2].
• The 110 Greene deal alone made up about 31% of that dollar total, by our math ^[2].
• In Long Island City, GTIS Partners paid $143.1 million for Domi, a 12-story building with 190 apartments ^[2].
• A few blocks from 110 Greene, a six-story building at 486 Broadway sold for $33.5 million, up from $23.5 million in 2022 ^[2].

But the filing shows the sale was no surprise. SL Green had already labeled the building held for sale on Sept. 30 after signing the contract, and it booked a $2.3 million charge for that step ^[1]. Selling at the contract price means the market value was locked in months before the deed hit city records.

What it means for you

Sale prices like these set the comps that lenders and appraisers use across Manhattan. A buyer at $1,013 per foot is betting the building earns more than safe bonds. With the 10-year Treasury at 4.86% ^[3], $1 million in Treasuries pays about $48,600 a year, by our math, so a property at that price needs to clear that bar to justify the risk. Watch the gap between sale yields and Treasury yields before buying into office REITs.

Zoom out

Big Manhattan landlords are selling selected buildings to raise cash, and buyers like Natora and GTIS are stepping in at nine-figure prices ^[2]. Each closed deal gives the rest of the market a fresh price tag to work from.