NEW YORK CITY—SL Green has acquired two mixed-use properties in Lower Manhattan and a controlling stake in a third such property in an iconic property in Soho.
The REIT, which is the city's largest office landlord, has purchased 187 Broadway and 5-7 Dey St. for close to $64 million. The transaction was completed off-market, directly with the seller. Carl Schwartz and Matt Scoville of Hunton & Williams represented the seller while Peter Fisch and Vincent Asaro of Paul, Weiss, Rifkind, Wharton & Garrison represented the buyer.
The properties sit directly across from 180 Broadway, a dormitory and retail asset that SL Green successfully developed from ground-up and, subsequently, sold in the third quarter of 2014. Located adjacent to the entrance to Downtown Manhattan's new Fulton Transit Center and one block east of the World Trade Center, the site consists of two retail/office buildings.
Says SL Green managing director Brett Herschenfeld, “This transaction illustrates how SL Green seeks to use its size, market expertise, proprietary OP Unit currency and industry relationships to identify and take advantage of compelling, well-located acquisition opportunities. The Fulton Transit Center is serving as the fulcrum of Downtown Manhattan's continuing revitalization and we are excited to once again create value in the corridor.”
Meanwhile, the firm has agreed to buy a 90% interest, based on a gross asset valuation of $255 million, in The SoHo Building. The property is being sold by a joint venture controlled by the family of the late real estate entrepreneur Tony Goldman, reportedly a pioneer in Soho's transformation into the retail mecca that it is today.
Located at 110 Greene St. in the heart of Soho, the building offers office and residential tenants large floor plates and substantial common areas. The property features 13 stories and retail space at the building, along Greene and Mercer Streets, offers existing and future tenants high visibility on two of the strongest retail streets in Manhattan. SL Green plans additional improvements to the property as it reintroduces it to the marketplace.
The transaction increases SL Green's sizable footprint in SoHo, boosting both its office and retail holdings in the area. It owns 102 Greene St., 121 Greene St., 115 Spring St., 131-137 Spring St. and 530-536 Broadway.
Says Herschenfeld, “This transaction presents SL Green with a unique opportunity to acquire and further enhance the property into one of the most compelling multi-use assets in Downtown New York. The property is truly fitting of its iconic name.”
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
