In a venture formed with Stonehenge Partners, SL Green Realty Corp. announced this week that it had acquired eight retail and multifamily properties in New York City for $416 million. According to a Businessweek article, the purchase marks SL Green's first foray into New York's apartment market and raises the real estate investment trust's profile as an owner of Manhattan street-retail properties. Even with this purchase, apartments are likely to remain “tangential to their business,” said Alex Goldfarb, an analyst with Sandler O'Neill & Partners LP in New York.
The venture indicated that a key component of the transaction is 724 Fifth Avenue, a prestigious retail location located between 56th and 57th streets in Manhattan's Plaza District, where Prada currently occupies approximately 20,700 square feet of space. The property enjoys prime position along the "Gold Coast" of Fifth Avenue -- a retail corridor known to achieve some of the highest retail rents in the world. It is situated in the vicinity of other retail properties which SL Green has ownership of, including 717 Fifth Avenue, home to Giorgio Armani's flagship store and the future flagship store of Dolce & Gabanna, in addition to 720 Fifth Avenue.
Andrew Mathias, President of SL Green, commented "This is an exciting opportunistic investment for SL Green, which already has an outstanding track record in acquiring and repositioning New York City office and retail properties. We also are excited about making our first significant equity investment in the multifamily area, which helps to diversify our portfolio further while still maintaining our New York City focus."
For more news and information visit Blumberg Capital Partners.
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