SL Green Realty Corp. (NYSE: SLG) announced today that it has formed a joint venture with Stonehenge Partners that will enter into a 99-year ground lease covering a residential building at 1080 Amsterdam Avenue. The joint venture will invest approximately $13 million into the transaction, including a complete redevelopment program which will begin shortly after the partnership takes possession.
1080 Amsterdam Avenue is a 82,250-square-foot, 20-story pre-war elevator building located just south of Columbia University’s campus, at the northwest corner of Amsterdam Avenue and West 113 th Street on Manhattan’s Upper West Side. The property, comprised of 96 apartments and two commercial units, was most recently utilized by St. Luke’s Hospital Center to house hospital staff. After taking possession, the SL Green/Stonehenge partnership will deploy a strategic renovation program to include common corridor upgrades and window improvements, as well as elevator, heating, and electrical system upgrades, in order to convert the property into a luxury Upper West Side residential address. The redevelopment is expected to be completed within 24 months from its commencement.
Ofer Yardeni, Managing Partner of Stonehenge, said, “Our relationship with SL Green is certainly off to a great start. Capitalizing on our respective strengths, we seek to take advantage of the best property ownership opportunities, acquire those properties, and then maximize value in ways that appeal to tenants while also meeting our objectives as investors. Together, we believe we are building a strong foundation for long-term success.”
About SL Green:SL Green Realty Corp., New York City's largest office landlord, is the only fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of June 30, 2012, SL Green owned interests in 71 Manhattan properties totaling more than 39.2 million square feet. This included ownership interests in 27.4 million square feet of commercial properties and debt and preferred equity investments secured by 11.8 million square feet of properties. SL Green also owns 385 residential units in Manhattan encompassing approximately 0.5 million square feet. In addition to its Manhattan investments, SL Green holds ownership interests in 32 suburban assets totaling 6.9 million square feet in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey, along with four development properties in the suburbs encompassing approximately 0.5 million square feet.