The N.Y.-based real estate investment trust (REIT),
SL Green Realty Corp
) penned an agreement to purchase The Olivia - a mixed-use
residential and commercial building - at the gateway to
Manhattan's far west side, for $386 million. The move depicts SL
Green's strategy to expand its multifamily investment platform in
the U.S., especially New York, given the booming residential
Completed in 2012, The Olivia is a 36-story building situated
at 315 West 33
Street. The property, spanning 492,987 square feet, comprises 333
luxury rental apartments and 270,000 square feet of commercial
space (100% leased), along with 5 retail outlets, 2 office
suites, a movie theater and a parking garage. The Olivia is
currently owned by Stonehenge Partners, a N.Y.-based private real
estate company. The above-mentioned buyout also includes an
We view the deal as a strategic fit for SL Green, given the
asset's location between 8
Avenues and its proximity to the Hudson Yards Redevelopment
Project, which is a Related Companies' proposed mix-use project.
Particularly, the Hudson Yards Redevelopment Project is expected
to drive customer traffic and thereby strengthen the retail
corridor. Hence, management views this as a vital factor in
enhancing the value of The Olivia's retail component.
SL Green primarily acquires, owns, repositions and manages
Manhattan commercial properties. As of Jun 30, 2013, the company
owned interests in 87 Manhattan properties totaling more than
42.8 million square feet.
SL Green currently carries a Zacks Rank #2 (Buy). Other better
performing REITs include
Winthrop Realty Trust
Highwoods Properties, Inc
). While Winthrop carries a Zacks Rank #1 (Strong Buy), Highwoods
and EastGroup have a Zacks Rank #2.
EASTGROUP PPTYS (EGP): Free Stock Analysis
WINTHROP REALTY (FUR): Free Stock Analysis
HIGHWOODS PPTYS (HIW): Free Stock Analysis
SL GREEN REALTY (SLG): Free Stock Analysis
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