Manhattan retail partners SL Green Realty Corp. and Jeff Sutton kicked of they city’s ICSC week with a flurry of high profile deals.
The partners announced this morning (Monday) that they have signed a new lease with “a major European fashion house” at 747 Madison.
The deal completes the retail repositioning at 747 Madison Avenue. The new 2,800 s/f, 15-year lease fills the last street-level space 747 Madison and brings it to 100% occupancy.
SL Green also announced three major capital markets transactions:
• The Company is conveying its 33.3 percent stake in the retail co-op at 747 Madison in a deal which values the asset at $160 million. In conjunction with the closing of the transaction, SL Green will make a $30 million preferred equity investment in the property.
• The Company is also conveying its 50 percent stake in the retail stores located at 21-29 West 34th Street. The agreement values the entire property, which includes the tenancies of Apple, Aldo and Geox, at $195 million. SL Green will retain its 50% share of 152,000 square feet of development rights.
• Through its debt and preferred equity platform, SL Green is making a $100 million participating structured investment in conjunction with Jeff Sutton’s planned joint venture investment at 530-536 Broadway, a retail and office property located in the heart of SoHo that currently features tenants Eastern Mountain Sports, Club Monaco, AT&T and Vince Camuto.
SL Green president, Andrew Mathias, said, “The lease signed at 747 Madison Avenue, coupled with the Alexander McQueen transaction at the Property announced earlier this year, perfectly demonstrates the power of our partnership. In less than two years, we completed a highly structured acquisition utilizing cash and stock, significantly enlarged the retail footprint at the property and signed leases with two world-class retailers. SL Green and Jeff Sutton are New York City’s leading retail team.”
He continued, “The sales and new investments announced today continue SL Green’s philosophy of harvesting significant gains and redeploying the capital into new accretive transactions.”
Regarding the Company’s structured investment in Soho, Mr. Mathias added, “530 Broadway is located at the most desirable intersection in its submarket, and we believe the property has tremendous upside.”
Today’s announcement follows the recent SL Green/Sutton acquisition of a 49-year leasehold interest covering the entire retail portion of 650 Fifth Avenue, and its subsequent lease buyout agreement signed with retailer Juicy Couture. The partners’ joint investments also include other prime assets on Fifth Avenue, in Times Square, and throughout Manhattan’s key retail corridors.
