SL Green Realty Corp. and partner Jeff Sutton have formed a venture that has acquired a 49-year leasehold interest for the retail portion of 650 Fifth Avenue.
The transaction was completed with former US Magistrate Judge Kathleen A. Roberts, the court-appointed federal monitor and interim trustee of the landlord, 650 Fifth Avenue Company. The Alavi Foundation, owner of 650 5th avenue, announced that it intends to appeal a court decision allowing U.S. authorities to seize the building afetr the court and and U.S. Justice Department declared the Foundation is a front for the Iranian government, which has been placed under sanctions.
Seizure will put the federal government in possession of 650 5th Avenue, which it would ultimately most likely sell the proeprty.
SL Green resident, Andrew Mathias, said the retail portion of 650 Fifth Avenue is “a perfect fit for our expanding retail investment portfolio in partnership with Jeff Sutton.ˮ
Mathias added, “Our retail investments have proven to be a profitable complement to our core office and structured finance businesses and we will continue to seek new opportunities in New York City’s best retail locations.”
The investment provides the SL Green/Sutton partnership with control of the building’s basement, grade-level, second and third floor retail spaces that are currently occupied by Juicy Couture, Godiva Chocolate and Devon & Blakely.
Mathias said the partners believed the deal will also help to stabilize the property and enhance its value.
David A. Green from Cushman & Wakefield acted on behalf of the property owner in the leashold sale.
A spokeman for the Alvai Foundation said he was unabel to secure a comment on the deal from either the Foundation or from Judge Roberts.
