SL Green Shells Out $173M for Premium Manhattan Office Buildings
- Oct 02, 2012
By Lynn Armitage, Contributing Editor
In an off-market transaction aimed at attracting upscale tenants to Manhattan’s Midtown South area, SL Green Realty Corp. bought two adjoining properties on Sixth Avenue for $173 million ($648 per square foot) from Atlas Capital Group, L.L.C.
The office buildings at 635 Sixth Avenue and 641 Sixth Avenue were originally built in 1902 as a large, contiguous department store that took up a full block between 19th and 20th Streets – the heart of the retail corridor. Together, the buildings offer up to 47,000 square feet of premium office real estate that have already attracted big-name technology tenants like Google and Infor.
“One of our stated goals in 2012 was to expand our presence in Midtown South, the hottest submarket in New York with a current vacancy rate below five percent,” said Isaac Zion, co-chief investment officer of SL Green. “This latest transaction further demonstrates our continuing belief in the strength and vitality of the expanding creative, media and technology sectors.”
The 163,000-square-foot building at 641 Sixth Avenue is already 100 percent occupied, and SL Green plans to invest a significant amount of capital to redevelop the 104,000-square-foot space at 635 Sixth Avenue, previously occupied by Apex Technical School, for high-quality tenants looking to be part of the vibrant and dynamic scene of the Midtown South market.
SL Green Realty Corp. is New York City’s largest owner of office properties, and the only fully integrated real estate investment trust, or REIT, whose primary focus is acquiring, managing and maximizing commercial properties in Manhattan. The ownership interests of SL Green through June of this year include 27.4 million square feet of commercial properties and debt, preferred equity investments secured by 11.8 million square feet of properties and 385 residential units in Manhattan. The company also owns 32 suburban properties in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey, along with four development properties in the suburbs. SL Green’s trading symbol on the NYSE is SLG.