Investor David Berley has purchased SL Green’s share of 315 West 36th Street for $115 million, or $799 psf.
Berley, and an investment group he heads, first purchased the building 40 years ago. Berley remains the building’s main investor and now has controlling interest.
SL Green acquired its 35.5 percent interest in 315 West 36th Street, a 147,619 s/f building, for $45.0 million in late 2012. In April this year, the company signed a blockbuster lease with WeWork swallowing up more 136,000 s/f in the property.
SL Green managing director, Brett Herschenfeld, commented, “The strategic early termination of the Teach for America lease laid the groundwork to unlock substantial value in the building.
“Signing a new long-term lease with WeWork allowed for the culmination of that strategy to take place through the sale of our interest, which provides returns and proceeds well in excess of our underwriting.”
He added, “This sale is a continuation of our business plan as it provides proceeds that can be redeployed into Eleven Madison in a tax efficient manner.”
Woody Heller of Savills Studley advised SL Green on this transaction.
315 West 36th was built in 1926 by George & Edward Blum. The 17-story building features 14 loft condominiums across the upper seven floors and 132,945 s/f of office space across the lower nine floors.
Walter & Samuels, which has completed over 30 condominium conversions in 30 years, converted the building’s upper floors to luxury loft-style condominium residences in 2004.
“We are delighted to buy SL Green’s stake in the property,” said Berley, who brought SL Green into the deal in 2012. “We have a long-term hold strategy for this building, and believe the asset will perform well over time.”