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SL Green In $162M Retail Deals

NEW YORK CITY-The two deals could just be the beginning as the firm explores additional JVs with a borrower.

By Melissa Kress | Updated on July 26, 2005

NEW YORK CITY-Continuing on its quest for high-end retail properties, SL Green has entered into two separate joint ventures with Jeff Sutton, a borrower in the firm’s structured finance program, totaling approximately $162.5 million. The first venture involves two adjoining retail buildings, 1551 and 1555 Broadway, and a retail and commercial building at 21 W. 34th St. The second venture involves a mixed-use property at 141 Fifth Ave.

The deals are a “significant expansion of our high-end retail” initiative, according to SL Green’s chief investment office Andrew Mathias. “We see retail as an area we want to continue to expand,” said Mathias during the firm’s second quarter earnings conference call. SL Green sees strong rental potential in the sector and will also continue to explore additional joint ventures with Sutton, he added.

In the first venture, which closed in the second quarter, the JV acquired the fee interests in 1551/1555 Broadway and in 21 W. 34th St. The Times Square properties were built in 1890′s and were most recently occupied by a Howard Johnson’s restaurant, which closed in the beginning of July after 46 years at this location. They have 71 feet of retail frontage along Broadway. “1551/1555 Broadway are located in the center of Times Square on the corridor of Broadway and 46 Street, the ‘bow tie’ of Broadway and Seventh Avenue,” according to the company. “The location is regarded as one of the world’s highest profile retail corners.” The project was financed through a new acquisition facility provided by Eurohypo.

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