Properties in Midtown Manhattan are prime real estate. This is not news. But as a new example of this, just recently, an office building in the area (that is currently the headquarters of HarperCollins Publishers) is about to be purchased for $252.5 million by SL Green Realty Corp. (SLG). SLG specializes in commercial properties. Right now, the building they will be purchasing is under 91 percent lease. The intention of SLG is thus to engage in a marketing and leasing campaign through which it will make huge capital improvements. The address of the property is 10 East 53rd Street.
SLG has joined forces with a partner but it will hold 55 percent in the venture and be general partner in the project. According to President Andrew Mathias, the company feels that once it puts its managerial stamp on the property, it will “become a highly coveted business address in the Plaza submarket.” This would definitely be welcome news for SLG which reported a drop of 88 percent in its third-quarter earnings last October compared to the same time period the year earlier.