SL Green Realty Corp. (NYSE: SLG) announced today that it has formed a joint venture with Harel Insurance and Finance and the Naftali Group to develop a dormitory tower for Pace University at 33 Beekman Street in downtown Manhattan.
The partnership acquired the fee interest in the planned development site, which faces Beekman and William Streets in the middle of the Pace downtown campus area and will develop an approximately 30 story building at the site. Upon completion of the development, the partnership will convey a long-term ground lease condominium interest in the building to Pace University for student housing together with ground floor school-related space.
For SL Green, the project represents another opportunity to increase its development activity while expanding its relationship with Pace. In early 2011, the Company in collaboration with Harel began construction of a 609-bed dormitory and retail condominium at nearby 180 Broadway, with delivery scheduled for January, 2013.
SL Green President, Andrew Mathias, commented, “We’re delighted to have the opportunity to develop another attractive and modern dormitory building for Pace University, one of New York City’s outstanding educational institutions. Our recent experience with Pace on the 180 Broadway project has demonstrated that we can work well with the University’s administration to create a superior living experience for its students. And once again, we have chosen to continue our successful collaboration with the Harel, the fourth such venture we’ve done together.”
David Falk and Kyle Ciminelli from Newmark Grubb Knight Frank acted on behalf of Pace for the transaction.
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.