SL Green Sells 3 Manhattan Properties

SL Green Realty Corp., New York City's largest office landlord, announced this week that it had agreed to sell three of its Manhattan assets in separate deals that will generate net cash proceeds of $240 million. In the first deal, SL Green is selling ts leased fee interest in 2 Herald Square, an 11-story 365,000 square foot commercial office building, for $365 million. In the second, SL Green, with its partner Jeff Sutton, reached an agreement to sell all of their interests in a mixed-use asset at 180 Broadway for $222.5 million. Finally, SL Green also closed on the sale of its development properties at 985–987 Third Avenue for $68.7 million.

"While the strategic approach for each of these investments varied, we had one goal in mind: creating shareholder value. I am very pleased to say that with each of these transactions, we've successfully demonstrated our ability to identify, create, and harvest significant value. Our combined IRR across these three deals is in excess of 21%," said Andrew Mathias, President of SL Green, in a company statement.

In its announcement, SL Green Realty did not identify the prospective buyers in any of the transactions.

For more news and information visit Blumberg Capital Partners.

SL Green to Acquire 304 Park Ave South for $135M

In a deal expected to close on June 1, SL Green Realty Corp. announced this week that it had entered into an agreement to acquire 304 Park Avenue South for $135 million from a partnership headed by David Berley, Chairman of Walter & Samuels Inc. The purchase price of the 215,000 square foot mixed-use office and retail building equals roughly $628 per square foot. Walter & Samuels represented the seller in the transaction, with Eastdil Secured serving as advisor.

304 Park Avenue South is located on the southwest corner of Park Avenue South and 23rd Street directly across the street from SL Green's One Madison Avenue in the Midtown South sub-district. The property is currently 95% leased to major tenants including IMG Models, H&R Block, Bath & Body Works and Time Warner Entertainment.

Andrew Mathias, President of SL Green, commented, "We've been monitoring Midtown South carefully looking for acquisition opportunities, however the consistently tightening vacancy rates and substantial lease activity in the area have driven cap rates on marketed deals below our target investment thresholds. This unique opportunity came to us because of the attractiveness of our Operating Partnership Units and our relationship with the seller."

For more news and information visit Blumberg Capital Partners.

SL Green Venture Picks Up $416M Portfolio

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.