SL Green adding 521 Fifth to portfolio in $225m deal.SL Green Realty Corp. will add 521 Fifth Avenue to its midtown portfolio in a deal that could cost up to $225 million, it was announced this week. The REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). has entered into a long term operating net leasehold interest in the 40-story, 460,000 s/f office building with an ownership group led by RFR RFR Radio Frequency Radiation RFR Request For Resources RFR Right of First Refusal RFR Radio Free Roscoe (TV show) RFR Risk-Free Rate (investing) RFR Rio Frio, Costa Rica Holding LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , which retained fee ownership of the property. SL Green also purchased an option to acquire fee ownership of the property in five years. Assuming it exercises its option, the total cost would be $225 million. The privately negotiated transaction was consummated at the same time that the company completed a joint venture for its One Madison Avenue Madison Avenue, celebrated street of Manhattan, borough of New York City. It runs from Madison Square (23d St.) to the Madison Bridge over the Harlem River (138th St.). In the 1940s and 50s, some of the major U.S. residential condominium project with a partnership comprised of RFR Holding and Ian Schrager Ian Schrager is a hotelier and real-estate developer. Schrager began his career as a nightclub owner. In 1977 he partnered with Steve Rubell, his fraternity brother from Syracuse University, in launching the New York City discothèque Studio 54. . [See report on Page 3.] Andrew Mathias, chief investment officer of SL Green, stated, "The addition of 521 Fifth Avenue to our midtown portfolio builds on our position in the Fifth Avenue office corridor and provides us with another venue to execute our retail strategy and create additional value." Located on the northeast corner of Fifth Avenue and 43rd Street, 521 Fifth Avenue is a classic office tower designed by Shreve, Lamb and Harmon Shreve, Lamb, and Harmon was the architectural firm best known for the 1931 Empire State Building, the tallest building in New York, at that time. The firm was formed in 1929 by the Canadian Richmond Harold ("R.H. , who also designed the Empire State Building. Currently 98 percent occupied by tenants from a diverse group of industries, the building benefits from its close proximity to Grand Central Station's Vanderbilt Avenue entrance. Floor plates range from 22,000 s/f at its base to 6,000 s/f in its tower. With an upcoming vacancy scheduled, SL Green plans to redevelop and reposition the building, as many of the existing leases are substantially below market. The redevelopment/repositioning project will mirror similar efforts at other SL Green properties, including its most recent redevelopment of 485 Lexington Avenue. Marc Holliday, president and chief executive officer of SL Green said, "The company's interest in this property should continue the trend of redeploying the company's capital gains into properties that offer greater long term growth opportunities." Darcy Stacom of CB Richard Ellis CB Richard Ellis Group, Inc. NYSE: CBG is a multinational real estate corporation currently based in Los Angeles, California, U.S.A.. On December 20, 2006, the corporation, also known as CBRE, completed acquisition of Trammell Crow Co. in a transaction valued at $2. acted as exclusive agent for RFR Holding LLC. |
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