SL Green has sold a 49% ownership interest in 400 E. 57th St. to an investment account managed by BlackRock.
NEW YORK CITY—SL Green Realty Corp. and BlackRock Real Assets—the real assets arm of BlackRock—have formed of a joint venture for the ownership of 400 E. 57th St., a rental apartment property in Midtown. The transaction constitutes a sale by SL Green of a 49% ownership interest in the entity to an investment account managed by BlackRock at a gross asset valuation of $170 million.
In conjunction with the recapitalization of the property, New York Community Bank provided a 10-year $100 million mortgage loan at a 3% fixed interest rate. Andrew Scandalios and Rob Hinckley of HFF represented SL Green on the transaction.
“BlackRock continues to target high-quality assets in major markets as a means of seeking to deliver attractive risk-adjusted returns to our clients, says Benjamin Young, managing director and head of US real estate separate accounts at BlackRock Real Assets. “The 400 E. 57th St. investment fits very favorably within our investment strategy given its gateway market location, current income, and the potential for future value creation. The partnership expects to continue to add value through a unit upgrade program and enhancement to the common areas and amenities.”
Adds David Schonbraun, co-CIO at SL Green, a REIT and the city's largest commercial property owner, “Investor demand for high-quality, well-located rental apartments in Manhattan continues to be robust. Along with our current partner, Stonehenge Partners, we have been able to create value through renovating and repositioning the property. This transaction allows us to capitalize on some of the value created, while maintaining future upside through our remaining equity stake.”
Located on First Avenue, 400 E. 57th St. features 261 luxury apartment units and 13,772 square feet of ground floor retail. It encompasses the entire east side of the block between 56th and 57th streets.
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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.
