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SL Green pumps another $80m into retail; signs new Apple lease.

SL Green Realty Corp. announced two major additions to its retail joint venture with Jeff Sutton: 717 Fifth Avenue and 720 Fifth Avenue in New York.

The company also announced that its venture with Sutton had entered into a major lease with Apple Computer Inc. at its West 34th Street redevelopment project. This will be Apple's third location in Manhattan.

717 Fifth Avenue is a four-story retail condominium with Hugo Boss and Escada's Manhattan flagship stores as primary tenants.

Its unique three-story glass atrium and prime Fifth Avenue location make it among the most desirable retail spaces in the world.

SL Green's investment in 717 Fifth Avenue is evidenced by loans totaling $46 million and an option to acquire up to 33% of the ownership interests in the property.

720 Fifth Avenue, located directly across the street from 717 Fifth Avenue, is a prime retail and boutique office property anchored by the most successful Abercrombie & Fitch store in the chain. Its 100,000 square feet of Class A office space is ideal for financial firms and other plaza district tenants, with substantial upside due to its 77% office occupancy.

SL Green's investment in 720 Fifth Avenue is evidenced by a $35 million loan and a 25% interest in the cash flow from the property, together with an option to acquire a 25% ownership interest at loan maturity.

Andrew Mathias, chief investment officer of SL Green Realty Corp., commented, "These series of transactions clearly demonstrate the success of the retail investment program initiated less then two years ago. Over that period of time, we have invested in nine highly desirable retail projects consisting of more than 400,000 s/f of retail and office space.

"The signing of the Apple lease and other leases signed to date reinforces the compelling returns available to us in this program."

SL Green's retail ownership totals approximately 300,000 s/f at eight properties.
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Publication:Real Estate Weekly
Date:Nov 1, 2006
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