SL Green to buy Times Square area building.

SL Green Realty Corp. (NYSE:SLG) has announced that it has signed a purchase contract to acquire 321 West 44th Street, a 200,000 square-foot Midtown office building, for a purchase price of $17.5 million in cash.

It is anticipated that SL Green will spend an additional $3 million to $4 million in capital improvements post-closing.

The property's current owner is First Republic Corp. Closing is expected to occur within the next 90 days.

Located in the heart of New York City's Times Square Redevelopment Area, 321 West 44th Street is a 10-story, Class B property, constructed in 1929.

Commenting on the acquisition, Stephen L. Green, chairman and CEO of SL Green Realty Corp., said "This transaction is a classic SL Green acquisition, in keeping with our strategy of taking an undervalued building in a emerging sub-market and repositioning it through creative renovations. Capital improvements of 321 West 44th are expected to include renovations to the lobby, entrance and common areas, as well as an Upgrading of the elevators."

Subsequent to the acquisition, SL Green's portfolio will consist of 12 properties, encompassing approximately 3.4 million rentable square feet.

SL Green Realty is a fully integrated, self-administered and self-managed real estate investment trust (REIT) which primarily owns, manages, leases, acquires and repositions Class B office properties in Manhattan.