SL Green Realty Corp. (NYSE: SLG) announced today that it has acquired 635 Sixth Avenue and 641 Sixth Avenue for a total of $173.0 million, or $648 per square foot from Atlas Capital Group, LLC.
The two adjoining properties, built in 1902 originally as a contiguous department store along Sixth Avenue, span the full block between 19 th and 20 th Streets – the core of the thriving Midtown South submarket. 635 Sixth Avenue is a 104,000 square foot building that was recently vacated in its entirety by Apex Technical School. 641 Sixth Avenue, is a 163,000 square foot, fully renovated, multi-tenanted office building that houses leading technology firms including Google and Infor. Atlas acquired 641 Sixth Avenue in 2007 and had recently agreed to purchase 635 Sixth Avenue to complete the full block front assemblage. The buildings have a combined 47,000 square feet of prime retail space contained within 184 linear feet of frontage along the vibrant lower Sixth Avenue retail corridor. Office occupancy at 641 Sixth Avenue is 100% and the 635 Sixth Avenue office space will be redeveloped with a significant capital infusion in order to reposition it for high quality tenancy in the Midtown South market.
“First the acquisition of 304 Park Avenue South and now the addition of these two properties are classic SL Green-type investments – sourcing off-market transactions, fully understanding their complexities, underwriting their potential and then executing,” stated Andrew Mathias, President of SL Green. “This is a great example of how we utilize our extensive relationships and know-how to capitalize on opportunities.”
Isaac Zion, co-Chief Investment Officer added “One of our stated goals in 2012 was to expand our presence in Midtown South, the hottest office submarket in New York with a current vacancy rate below five percent, and this latest transaction further demonstrates our continuing belief in the strength and vitality of the expanding creative, media, and technology sectors.”