SL Green Acquires More Suburban Properties

The acquisitions bolster SL Green's 3.6-million-sf portfolio in Westchester County and Fairfield County, CT, which it acquired in the merger with Reckson Associates Realty Corp. That transaction, valued at $6 billion, closed on Thursday, Jan. 25. The sales deal with RPW Group, closed on Jan. 19, according to those familiar with the deal.

SL Green Realty acquired 399 Knollwood Rd., a 143,000-sf fully leased office building on the White Plains/Greenburgh border for $31.6 million. The deal is valued at $216 per sf, slightly below the record Westchester sale price of $219 per sf paid by Heritage Realty Services LLC of New York City last year for 3 Gannett Dr. in Harrison.

In addition, SL Green acquired 300 Main St. in Stamford, an 85,000-sf office building from RPW Group for $15 million. The class B building is 90% leased. The deal is valued at $176 per sf.

Andrew Merin, vice chairman, and Patrick Colwell, senior director of the New York Metropolitan Area Capital Markets Group of Cushman & Wakefield, along with Glenn Walsh of C&W's Transaction Services Group represented RPW Group.

David Schonbraun, managing director of SL Green, says of the deal, "We felt both properties are good compliments to the properties we are acquiring from Reckson."

C&W's Colwell adds, "This shows the continued interest in Westchester County by investors and is another example of a sale over $200 a sf, which is becoming somewhat commonplace now in Westchester County for class A product."

Robert Weisz, chairman and CEO of RPW Group, says his firm will use the proceeds from the sale as available capital for future acquisitions. Commenting on the sale with SL Green, he notes, "I think this is a great message to the market that a company like SL Green is making further investments in the market other than what they are acquiring from Reckson."

A few months ago, RPW Group acquired the 606,606-sf 1133 Westchester Ave. office building in Harrison. The firm will be converting that property to multi-tenant use. IBM, the former owner of the property, has relocated a significant amount of personnel from there to other buildings in Westchester.