SL Green to Purchase Majority Stake in 460 W 34th Street
December 03 2018 - 7:35AM
Business Wire
Off-Market Acquisition Marks SL Green’s
Strategic Entry into Hudson Yards District
SL Green Realty Corp. (NYSE:SLG), New York City’s largest office
landlord, today announced that it has entered into a contract to
purchase a majority and controlling interest in 460 West 34th
Street, in Manhattan. The transaction values the 20-story Class-A
office building at a gross purchase price of $440 million. After
taking into account earlier structured investments made through SL
Green’s Debt and Preferred Equity platform, SL Green’s blended
average basis in the property will be $528 per square foot .The
transaction is expected to close in the first half of 2019, subject
to customary closing conditions.
The property is located along the full block front of 10th
Avenue between 33rd and 34th Streets in the heart of the Hudson
Yards submarket and directly across the street from the new
Manhattan West development projects. The investment marks SL
Green’s first major investment in the Hudson Yards neighborhood. SL
Green will execute a comprehensive building wide redevelopment
including relocation of the building entrance from the 34th Street
side of the building to 33rd Street plus new elevators,
storefronts, windows and infrastructure. The redevelopment will
feature activation of numerous roof setback terraces. New
oversized, industrial design windows, 13’ high floor slabs with
mushroom capped columns and new in-lobby coffee bar will provide an
exciting and creative work environment in contrast to the
surrounding new glass skyscrapers. The building’s location, in
close proximity to the new Penn Station transit center, is
singularly convenient to the many new neighborhood amenities
emerging as part of the new Hudson Yards and Manhattan West
developments.
SL Green’s Managing Director, Brett Herschenfeld,
commented, “Through our direct real estate relationships, we were
able to finance multiple off-market investments in the Property.
Following a series of successful negotiations, those investments
are now resulting in ownership of a controlling majority, direct
ownership stake in a building which will undoubtedly deliver value
to our shareholders in the years to come.”
SL Green’s Executive Vice President, Director of Leasing and
Real Property, Steven Durels, added, “We believe this is an
incredible opportunity for SL Green to reposition the building as a
creative alternative, which will appeal to tenants seeking a high
design industrial vibe with modern infrastructure while also being
highly competitive in location, amenities and rent.”
About SL Green Realty Corp.
SL Green Realty Corp., an S&P 500 company and New York
City's largest office landlord, is a fully integrated real estate
investment trust, or REIT, that is focused primarily on acquiring,
managing and maximizing value of Manhattan commercial properties.
As of September 30, 2018, SL Green held interests in 106 Manhattan
buildings totaling 46.4 million square feet. This included
ownership interests in 28.2 million square feet of Manhattan
buildings and 18.2 million square feet of buildings securing debt
and preferred equity investments.
In addition, SL Green held ownership interests in 15 suburban
buildings totaling 2.3 million square feet in Brooklyn, Westchester
County, and Connecticut.
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statements, other than statements of historical facts, included in
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subject to a number of risks and uncertainties, many of which are
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SLG- A&D
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version on businesswire.com: https://www.businesswire.com/news/home/20181203005245/en/
Investors:Matt DiLibertoChief Financial OfficerSL Green Realty
Corp.(212) 594-2700
Press:BerlinRosenslgreen@berlinrosen.com(646) 452-5637
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