SL Green to Strengthen Portfolio With Acquisition of 346 Madison Avenue

SL Green SLG recently entered into a contract to acquire 346 Madison Avenue, along with the adjacent site at 11 East 44th Street, for $160 million. Subject to customary closing conditions, the deal is expected to close in the fourth quarter of this year.

The acquisition of the two adjoining buildings offers a strategic opportunity to develop a best-in-class new building on a key development site in Midtown East. When combined, these properties can provide approximately 800,000 rentable square feet, in line with the East Midtown rezoning.

There is a strong demand from tenants for new construction with advanced amenities, column-free floors, healthy workplace infrastructure and easy access to transit, and this site stands a great chance to meet those needs.

Per Harrison Sitomer, chief investment officer of SL Green, “These assets are in an exceptional location just steps from One Vanderbilt. As we continue to prioritize well-located opportunities in our core sub-markets, these properties provide us the opportunity to pursue a world-class, ground-up new office development in the heart of the strongest office market in the country. We look forward to capitalizing on this unique investment to unlock its long-term value.”

Conclusion

This acquisition highlights the company’s commitment to acquiring assets in key markets to capture profitable growth opportunities and deliver services tailored to tenants’ needs. Apart from this acquisition, SL Green’s leasing successes position it as a standout in the office real estate sector despite ongoing market challenges.

In the past three months, shares of this Zacks Rank #3 (Hold) company have dropped 7.1% against the industry's growth of 0.3%.

Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Crown Castle CCI and Paramount Group PGRE, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for CCI’s 2025 FFO per share has moved 3 cents northward to $4.21 over the past two months.

The Zacks Consensus Estimate for PGRE’s 2025 FFO per share has moved 2 cents upward to 54 cents over the past two months.

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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This article originally published on Zacks Investment Research (zacks.com).

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