NEW YORK CITY-A joint venture between SL Green Realty Corp. and partner Jeff Sutton has acquired a 49-year leasehold interest covering the entire retail portion of 650 Fifth Ave.

The US government two months ago won a protracted court battle to seize control of the office building that it claimed was secretly owned by the Iranian government, according to the Wall Street Journal.

The deal was completed with former US Magistrate Judge Kathleen A. Roberts, the court-appointed federal monitor and interim trustee of the landlord, 650 Fifth Avenue Co.

SL Green President, Andrew Mathias, said, “Situated in the heart of Fifth Avenue's prime retail corridor at 52nd Street, 650 Fifth Ave. is a perfect fit for our expanding retail investment portfolio in partnership with Jeff Sutton. Our retail investments have proven to be a profitable complement to our core office and structured finance businesses and we will continue to seek new opportunities in New York City's best retail locations.”

SL Green did not divulge financial details of the deal, but a court document said the long-term lease would bring the building more than $30,000 a day in additional revenue, which calculates out to more than $10 million per year, the WSJ reports.

The investment provides the SL Green/Sutton partnership with control of the building's basement, grade-level, second and third floor retail spaces that are currently occupied by Juicy Couture, Godiva Chocolate and Devon & Blakely. David A. Green from Cushman & Wakefield acted on behalf of the property owner. See story in the Wall Street Journal.