SL Green Teams Up With Rockpoint for 100 Park Avenue, Sells 49% Stake

SL Green SLG recently announced that it has entered into a joint venture (JV) with Rockpoint, a Boston, MA-based real estate private equity firm. Under the arrangement, SLG has agreed to sell 49% stake in 100 Park Avenue at a gross asset valuation of $425 million.Spanning 905,000 square feet, the property under consideration is a 36-story office tower in Midtown Manhattan. Its location in the vicinity of the Grand Central Terminal and presence of amenities like a golf simulator, state-of-the-art lounge, game room, personal training studio and conference rooms make it an ideal office destination. With the demand for high-quality premium offices on an upswing in vibrant New York, 100 Park Avenue stands to gain.Partnering with Rockpoint allows SL Green to reduce its equity exposure in 100 Park Avenue while retaining operational control and enhancing its balance sheet flexibility, as the funds from the stake sale can be reinvested in value-accretive investments.Final Take on the JVSL Green has been following an opportunistic investment policy to enhance its overall portfolio quality. Over the years, the large-scale suburban asset sale has helped it narrow its focus on the Manhattan market as well as retain the premium and highest-growth assets in the portfolio.With Rockpoint’s institutional capital and SL Green’s asset management expertise, the above partnership supports leasing momentum, repositioning efforts and potential valuation upside for a well-located Midtown asset.Over the past month, shares of this Zacks Rank #3 (Hold) office REIT have rallied 17.1% against the industry’s fall of 2.1%.Image Source: Zacks Investment ResearchStocks to ConsiderSome better-ranked stocks from the broader REIT sector are Host Hotels & Resorts HST and Prologis Inc. PLD, 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 HST’s 2025 and 2026 FFO per share is pegged at $2.05 and $2.04, respectively. This implies year-over-year growth of 4.1% for 2025 and a marginal fall for 2026.The Zacks Consensus Estimate for PLD’s 2025 and 2026 FFO per share is pinned at $5.80 and $6.08, respectively. This calls for year-over-year growth of 4.3% for 2025 and 4.7% 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.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Host Hotels & Resorts, Inc. (HST): Free Stock Analysis Report Prologis, Inc. (PLD): Free Stock Analysis Report SL Green Realty Corporation (SLG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks