Consistent with its efforts to enhance its retail portfolio,
SL Green Realty Corp.
) announced a lease deal and several other capital market
transactions. The expansion move is in line with the company's
strategy of boosting the tenant base of industry giants and
paving way for rental revenue increment.
SL Green along with its partner Jeff Sutton penned a new deal
with a Europe based top fashion firm for about 2,800 square foot
of space at 747 Madison Avenue. With this 15-year lease
agreement, the company concluded the repositioning at 747 Madison
Avenue and the property now stands fully occupied.
Other Retail Transactions
This real estate investment trust (REIT) disclosed the handing
over of its 33.3% interest in the retail co-op at 747 Madison for
asset value worth $160 million. With the closure of this
transaction, SL Green plans to craft a preferred equity
investment of $30 million in the asset.
Moreover, the company declared the offloading of its 50%
interest in 21-29 West 34
Street based retail properties, which houses renowned companies
), Geox and Aldo as tenants. This entire property was valued at
$195 million. As a matter of fact, SL Green will still have its
50% stake of 152,000 square feet of development rights.
Furthermore, in concurrence with Jeff Sutton's joint venture
investment at 530-536 Broadway, SL Green is going for a
participating structured investment worth $100 million. 530-536
Broadway, which has a retail and office property, is positioned
in the affluent submarket of SoHo. The properties are anchored by
several well-known tenants such as Club Monaco of
Ralph Lauren Corp.
), Vince Camuto,
) and Eastern Mountain Sports.
SL Green is seeking to tab opportunities in New York City's
premium retail locations with its retail investments
complementing its core office and structured finance businesses.
In addition, the company's effort to solidify its partnership
with Jeff Sutton in the renowned New York City retail corridor is
commendable and provides significant growth prospects.
In relation to this, last month the company acquired interest
in 650 Fifth Avenue through a joint venture with its partner Jeff
Sutton. Moreover, in the same month, the duo penned a deal to buy
out the lease of retailer Juicy Couture at 650 Fifth
We believe that the diversification of investments in retail
properties would offer this Zacks Rank #2 (Buy) stock sufficient
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