Jeff Sutton Acquires SL Green’s Stake in 724 Fifth Ave.

NEW YORK CITY—Jeff Sutton, the founder and president of Wharton Properties, is purchasing SL Green Realty Corp.’s interest in 724 Fifth Ave., paying back SL Green’s investment in 720 Fifth Ave., plus partially repaying another partnership loan. SL Green will receive net proceeds of $85.5 million for these transactions, which are expected to close in the third quarter of 2018.

In January 2012, a joint venture of SL Green, Stonehenge Partners and Wharton Properties acquired 724 Fifth Ave. from David Frankel Realty for $223 million. The 12-story, 56,400 square-foot structure, located between W. 56th and W. 57th streets was originally built in 1921. Prada occupies 15,540 square feet of retail space spanning four floors and 5,200 square feet of office space on an additional floor. The Real Deal reported that the Italian fashion designer’s rent is $19 million annually with another 10 years on its lease.

724 Fifth Ave. was part of a group of seven buildings purchased by the same joint venture from David Frankel Realty, in January 2012 for $416 million. The portfolio also included 44 W. 55th St., 400 E. 57th St., 760 Madison Ave., 762 Madison Ave., 19-21 E. 65th St. and 400 E. 58th St.

In addition, in 2016, Wharton Properties refinanced 720 Fifth Ave. in the amount of $433 million. All information regarding the joint venture acquisitions and building dimensions was recorded in Real Capital Analytics. The Real Deal reported that of this $433 million, SL Green provided a $33.75 million loan. This would be the amount repaid as part of the Fifth Ave. transactions recently announced.

720 Fifth. Ave., located between W. 56th and W. 57th streets, is a 15-floor, 121,108 square-foot structure, built in 1954. Wharton Properties purchased it from 720 Fifth Avenue Associates for $153 million in October 2006. Abercrombie & Fitch runs its flagship store from this location.