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L Green Realty has acquired the office portion of 500 Park Avenue from Morgan Stanley for $130 million, marking a significant investment in Manhattan's commercial real estate market. The deal comes after Morgan Stanley listed the 11-story condo for sale two months ago, seeking at least $125 million. The property spans 201,000 square feet and breaks down to $647 per square foot.

    SL Green's chief investment officer, Harrison Sitomer, highlighted the "fortress corridor" of Park Avenue as a prime location that attracts top-tier tenants and commands triple-digit rents. Notable tenants in the building include Vera Wang, Georgetown Company, and Friedland Properties, with furniture company Frato occupying retail space.

    The property was developed in 1960 as PepsiCo's headquarters and features 56 residential condominium units above its office and retail space. The building is currently 95% occupied, having been renovated in 2019. SL Green plans to upgrade the lobby and add amenities to capitalize on "strategic rent growth potential" while also improving the public plaza.

    This acquisition follows a busy period for SL Green, which recently sold an 11% stake in One Vanderbilt to Japan's Mori Building Company for $4.7 billion. The company has also extended and modified a $743 million loan backing its property at 1515 Broadway, securing a 3.93% interest rate until March 2028. Additionally, SL Green announced plans to sell $400 million in stock, which will be used for general corporate purposes, including new debt and equity investments and debt repayment.