SL Green Sheds 10 East 53rd Street at $312M as Office REIT Executes $2.5B Disposition Plan

On Monday, SL Green Realty agreed to sell 10 East 53rd Street to Jeffrey Kaplan's Meadow Partners for $312.2 million. Newmark advised both sides. The deal is expected to close in the third quarter of 2026.

SL Green, New York City's largest office landlord, acquired the 390,000-square-foot Midtown East tower in 2012 for $252.5 million. It bought out partner Canada Pension Plan Investment Board's stake two years later at a $236 million valuation. The REIT then poured $170 million into redeveloping the property into a Class A asset.

The building is now 92 percent leased. Tenants include brokerage Compass, Swarovski North America, Equinox Fitness, and Metropolitan Bank. SL Green will continue to manage the property post-sale.

SL Green's net cash proceeds from the sale are approximately $100 million. The company will use those funds for corporate debt repayment, per the announcement. Harrison Sitomer, SL Green's president and chief investment officer, called the deal a "meaningful step forward" in executing the REIT's $2.5 billion 2026 strategic disposition plan.

Newmark's Jordan Roeschlaub and Nick Scribani are handling the debt assignment for Meadow Partners' acquisition financing. They are seeking a 50 percent loan-to-value ratio, Commercial Observer reported. That implies roughly $156 million in first-mortgage debt on a property that last traded at a significantly higher basis.

Meadow Partners raised a $530 million flagship fund in 2024 targeting New York and London real estate. The firm has been active: in September 2025, it made a $36 million preferred equity investment in Edward J. Minskoff Equities' 1166 Avenue of the Americas. Earlier this year, it invested $62 million in Minskoff and LaSalle Investment Management's 51 Astor Place.

SL Green has also been busy on the disposition front. Last week, it announced the sale of a 49 percent stake in 346 Madison Avenue to Japanese developer Mori Building Company. The two plan to jointly build a new office tower on that Midtown site.

The 10 East 53rd Street sale price of $312.2 million equates to roughly $800 per square foot. That is a premium to many recent Midtown office trades, but below the peak pricing SL Green achieved on similar assets in prior cycles. The $100 million net proceeds represent a roughly 40 percent return on SL Green's total invested capital, including the redevelopment spend.

The transaction underscores a bifurcated office market. Well-located, well-leased, recently renovated assets in prime Midtown corridors still command institutional capital. Meadow Partners is betting that the 92 percent occupancy and strong tenant roster will support the debt service on a 50 percent LTV loan.

For SL Green, the sale is part of a broader deleveraging strategy. The REIT has been selling assets and using proceeds to pay down debt as it navigates a higher-for-longer rate environment. The $2.5 billion disposition plan for 2026 is the largest such program among publicly traded office REITs.

The question for investors is whether SL Green can execute the remaining $2.4 billion in planned sales at similar pricing. If the market for Midtown office assets remains selective, the REIT may need to accept lower prices or hold assets longer than planned. The 10 East 53rd Street sale provides a data point, not a trend.