SL Green Acquires Loft-Style Building
October 17 2019 - 7:30AM
Business Wire
Off-Market Acquisition Partially Funded by Sale
of 1010 Washington Boulevard In Stamford, CT
SL Green Realty Corp. (NYSE:SLG), New York City’s largest office
landlord, today announced that it has entered into a contract to
purchase 603 West 50th Street in Manhattan, a six-story,
160,000-square-foot office property. KCP Holdco, Inc., an affiliate
of the seller, which currently occupies the property, will
lease-back approximately 40,000-square-feet of office space to
serve as its headquarters. SL Green will undertake a full-building
repositioning to elevate the profile of this asset. The transaction
is expected to close within the next 90 days, subject to customary
closing conditions.
Harrison Sitomer, Senior Vice President of SL Green said,
“603 West 50th represents another opportunity for us to do what we
do best – reposition an asset and create value through effective
capital improvements and a targeted leasing strategy. With
strategic capital investment, we will transform an underdeveloped
property into a competitive class-A building that will attract
companies across industries, particularly businesses in the
creative industries.”
Built in 1940, 603 West 50th Street is located on 11th Avenue,
along the entire block frontage between 50th and 51st street. Upon
closing, SL Green will execute a comprehensive renovation program,
upgrading the building with state-of-the art infrastructure while
enhancing the property’s industrial aesthetic. It is a timber
construction building featuring large windows, wood floors and
beams, brick perimeter walls, and floors ranging between 22,000 to
28,000 rentable square feet. SL Green has a long-proven track
record of successfully repositioning pre-war buildings as creative
alternatives, such as the company’s undertaking at 410 10th
Avenue.
Marc Goldfarb of KCP Holdco, Inc. commented, “We have
known SL Green for years and believe they have the vision to be the
best stewards of the asset going forward. It is important to us
that we choose an owner that has the necessary experience to
renovate and manage the property at a high caliber, particularly
since we will continue to call 603 West 50th Street our
headquarters.”
SL Green’s acquisition of 603 West 50th Street will be partially
funded by proceeds from the sale of 1010 Washington Boulevard in
Stamford, CT, which is under contract to be sold for $23 million.
This transaction showcases the Company’s ability to reposition the
portfolio by exiting non-core assets, recycling capital into higher
quality office assets with greater upside potential, in a
tax-efficient manner.
Woody Heller and David Heller of Savills Studley advised the
seller.
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, 2019, SL Green held interests in 93 Manhattan
buildings totaling 45.0 million square feet. This included
ownership interests in 27.2 million square feet of Manhattan
buildings and 17.8 million square feet securing debt and preferred
equity investments. In addition, SL Green held ownership interests
in 7 suburban properties comprised of 15 buildings totaling 2.3
million square feet in Brooklyn, Westchester County, and
Connecticut.
To be added to the Company's distribution list or to obtain the
latest news releases and other Company information, please visit
our website at www.slgreen.com or contact Investor Relations at
(212) 594-2700.
Forward-looking Statement
This press release includes certain statements that may be
deemed to be "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 and are intended
to be covered by the safe harbor provisions thereof. All
statements, other than statements of historical facts, included in
this press release that address activities, events or developments
that we expect, believe or anticipate will or may occur in the
future, are forward-looking statements. Forward-looking statements
are not guarantees of future performance and we caution you not to
place undue reliance on such statements. Forward-looking statements
are generally identifiable by the use of the words "may," "will,"
"should," "expect," "anticipate," "estimate," "believe," "intend,"
"project," "continue," or the negative of these words, or other
similar words or terms.
Forward-looking statements contained in this press release are
subject to a number of risks and uncertainties, many of which are
beyond our control, that may cause our actual results, performance
or achievements to be materially different from future results,
performance or achievements expressed or implied by forward-looking
statements made by us. Factors and risks to our business that could
cause actual results to differ from those contained in the
forward-looking statements are described in our filings with the
Securities and Exchange Commission. We undertake no obligation to
publicly update or revise any forward-looking statements, whether
as a result of future events, new information or otherwise.
SLG- A&D
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191017005408/en/
Investors: Matt DiLiberto Chief Financial Officer SL Green
Realty Corp. (212) 594-2700
Press: BerlinRosen slgreen@berlinrosen.com (646) 452-5637
SL Green Realty (NYSE:SLG)
Historical Stock Chart
From Mar 2024 to Apr 2024
SL Green Realty (NYSE:SLG)
Historical Stock Chart
From Apr 2023 to Apr 2024