The deals are a "significant expansion of our high-end retail"initiative, according to SL Green's chief investment office AndrewMathias. "We see retail as an area we want to continue to expand,"said Mathias during the firm's second quarter earnings conferencecall. SL Green sees strong rental potential in the sector and willalso continue to explore additional joint ventures with Sutton, headded.

In the first venture, which closed in the second quarter, the JVacquired the fee interests in 1551/1555 Broadway and in 21 W. 34thSt. The Times Square properties were built in 1890's and were mostrecently occupied by a Howard Johnson's restaurant, which closed inthe beginning of July after 46 years at this location. They have 71feet of retail frontage along Broadway. "1551/1555 Broadway arelocated in the center of Times Square on the corridor of Broadwayand 46 Street, the 'bow tie' of Broadway and Seventh Avenue,"according to the company. "The location is regarded as one of theworld's highest profile retail corners." The project was financedthrough a new acquisition facility provided by Eurohypo.

The 34th Street property is a five-story retail and commercialbuilding that features 50 feet of retail frontage on 34th Streetbetween Fifth and Sixth avenues near Herald Square.

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