Real Estate

Iconic Lipstick Building may be on the market

The land under the iconic Lipstick Building at 885 Third Ave. may be sold by SL Green Realty Corp. in its quest to shed assets and reinvest in 11 Madison Ave.

The East Side tower is one of a half-dozen properties SL Green could sell to pay for its upcoming $2.6 billion purchase from Sapir and CIM Group, according to a report — a deal that includes $300 million in tenant improvement costs.

In addition to the cash raised from the sales, SL Green expects to finance the mega-transaction with $1.2 billion to $1.4 billion of debt through collateralized mortgage-backed securities, according to the report, from Sandler O’Neill & Partners analysts Alexander Goldfarb and Ryan Peterson.

“SLG expects to sell six to seven assets, possibly including the Lipstick Building and 131-137 Spring St., to fund the $1.1B to $1.4B of equity needed,” the analysts wrote.

The 650,000-square-foot, 27-year-old building at 53rd Street and Third Avenue has a pinkish mauve granite facade in an oval shape — hence its nickname — that was designed by John Burgee and Philip Johnson for Hines.