SL Green announced that they have entered into an agreement to purchase 600 Lex from a JV led by Hines.
1) One criticism of the strong pricing rumored in the market was it was concentrated in questionable foreign buyers who may not be able to close deals or "didn't represent the 'true' market." SL Green as the buyer indicates that demand is more institutional and traditional.
2) REIT's are the marginal buyer - Although SL Green alone does not the REIT market make, many others have been buoyed by recent capital raises and may pursue deals aggressively.
3) Core properties in core markets have held up well - you don't want to read too far into one date point - but the deal is a good sign for the Manhattan market.
4) It's a bet on a rapid recovery - from the SL Green release "