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Thursday, 31 January 2013

SL Green Buys Manhattan Retail Property for $122Mln

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SL Green Realty Corp. has paid $122.3 million, or $1,790/sf, for a 68,342-square-foot retail/loft property in the Soho section of lower Manhattan.

The New York REIT bought the property, two adjacent six-story buildings at 131-137 Spring St., from the Willet Cos. of Rye, N.Y., which had purchased it in 2006 for $46 million.

The buildings, whose ground-floor retail tenants are Diesel and Burberry, was constructed in 1915 and renovated in 2004. Their upper floors are comprised of loft space.

The New York REIT, which unsuccessfully bid for the property in 2006, closed the deal at the end of last year.

Andrew Mathias, SL Green's president, said other investors were "vying hard" for the property. He said the REIT was drawn to the property because of its "high-quality stores" and prime area in Soho. It sits between Wooster and Greene streets.

Mathias said tenants in the property have relatively short-term leases, adding that the high price paid for the property is a reflection of the climbing retail rents in the area since 2006. Rents for retail space in the area are average nearly $300/sf, up 8.5 percent from five years ago, according to Cushman & Wakefield.

SL Green has often partnered with Jeffrey Sutton on retail investments in New York, particularly in the Soho area. But it closed its acquisition during a short time period near the end of the fourth quarter, possible impacting its ability to form a venture. However, it's possible it eventually will.

Comments? E-mail Josh Mrozinski or call him at (267) 247-0112, Ext. 213.


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Additional Info

  • Syndicate to Realpoint: No
  • Cities: New York City
  • States: New York
  • Sector: Retail
  • Subject: Property Acquisitions (ACQ)
  • Company: Saul Centers, Inc.
  • Private: No
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