Sutton, SL Green JV Nabs 49 KSF in Times Square for $136.6M
- Sep 13, 2011
September 13, 2011
By Nicholas Ziegler, News Editor
After securing rights to the fee interest in 1552 Broadway in Manhattan’s Midtown market earlier this year, a joint venture of SL Green Realty Corp. and Jeff Sutton announced that it has entered into a 70-year leasehold at the adjacent 1560 Broadway for $136.6 million — enabling it to assemble up to nearly 49,000 square feet of space with direct frontage into the famous Times Square façade.
With some of them most visible retail availability in the area, reaching an estimated 40 million visitors each year, the initiative will also feature more than 190 linear feet of ground-level store frontage that wraps from Broadway around the corner to 46th Street.
“We have enjoyed notable success in our retail joint ventures with Jeff Sutton and believe this transaction has the potential to deliver positive investment results once again,” Andrew Mathias, president of SL Green, said. “The strategic combination of 1552 Broadway and 1560 Broadway will expand the square footage of a unique Times Square site in a way that dramatically increases the value and visibility of the space for both the retailer and landlord.”
The transactions are the latest in a series of significant deals jointly executed by SL Green and retail investor and operator Jeff Sutton. Previous collaborations have included the American Eagle and Aeropostale flagships in Times Square and the Armani and Dolce & Gabbana stores at 717 Fifth, among others.
Midtown, and the Times Square submarket in particular, remains a hot area. According to a CB Richard Ellis report, Midtown posted 560,000 square feet of net absorption in August, with the average availability rate dropping 0.3 points to 11.3 percent, and sublease availability dropped 0.1 point to 2.8 percent.