UPDATE 1-SL Green sells stake in Manhattan tower

NEW YORK Aug 10 (Reuters) - SL Green Realty Corp (SLG.N) said on Monday it has agreed to sell a 49.5 stake in a Manhattan office tower that values the property at more than $500 million.

SL Green said it is selling the stake in 485 Lexington Avenue, an office tower with 921,000 square feet, whose tenants include Citigroup (C.N), to a joint venture comprised of Optibase Ltd and Gilmor USA LLC. It estimated the tower's value at $547 per square foot, with a capitalization rate -- the ratio between income and cost -- of 6.25 percent.

The real estate investment trust said the sale, subject to approval by lenders, shows that investor interest in Manhattan commercial real estate properties is rebounding. (Reporting by Nick Zieminski, editing by Gerald E. McCormick)