SL Green Realty Corp. SLG announced that it has entered into a contract to sell the residential and retail portions of 7 Dey Street to GO Residential for $222.6 million, while retaining the 26,000-square-foot office space under its ownership. Subject to customary closing conditions, the deal is expected to close in the second quarter of 2026.
The 260,000 square foot building sits right across the Fulton Transit Center. It includes 17,000 square feet of flagship retail space across the basement, ground and second floors; 26,000 square feet of commercial space across floors 3-5; and 217,000 square feet of residential space with 209 rental units. These units feature studios through three-bedroom layouts and are currently 99% leased.
Per Harrison Sitomer, president and chief investment officer of SL Green, “This transaction continues the execution of a deliberate strategy to illuminate the value of selected assets and unlock embedded value. We are pleased to partner with GO Residential in a transaction that allows us to prove the value of best-in-class, new construction residential and retail properties, while retaining ownership of three office floors to realize future incremental value.”
Wrapping Up
SL Green has been following an opportunistic investment policy to enhance its overall portfolio quality. This includes divesting its mature and non-core assets, including residential and retail properties, in a tax-efficient manner and using the proceeds to fund development projects and share buybacks.
Apart from the above contract to sell, SL Green, with its joint venture partner, Jeff Sutton’s Wharton Properties, closed on the sale of 690 Madison Avenue for $54.5 million this month. Such match-funding initiatives indicate the company’s prudent capital-management practices and will relieve pressure from its balance sheet.
In the past month, shares of this Zacks Rank #3 (Hold) company have decreased 3.5% compared with the industry’s fall 1.3%.
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Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Cousins Properties CUZ and Piedmont Realty Trust, Inc. PDM, 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 CUZ’s 2026 FFO per share is pinned at $2.93. This indicates year-over-year growth of 3.2% for 2026.
The Zacks Consensus Estimate for PDM’s 2026 FFO per share is pegged at $1.49. This implies year-over-year growth of 5.7% for 2026.
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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Cousins Properties Incorporated (CUZ): Free Stock Analysis Report
SL Green Realty Corporation (SLG): Free Stock Analysis Report
Piedmont Realty Trust, Inc. (PDM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).