NEW YORK CITY—SL Green Realty Corp. has formed a joint venture with Prudential Real Estate Investors for the ownership of office condominium units at Tower 46 (55 W. 46th St). The units consist of 347,000 square feet with office space on floors two and 22 to 34, while there's also retail space at grade on 46th street.
SL Green announced its acquisition of the Class A asset—constructed in 2013 as the International Gem Tower—for $295 million this past September and completed the transaction in October. A fund managed by PREI on behalf of institutional investors now owns a 75% stake under the terms of the new joint venture announced today, with SL Green keeping 25% ownership and retaining management and leasing responsibilities.
The glass and steel structure provides highly efficient column-free space and floor-to-ceiling windows on all office floors with sweeping views of the New York City skyline. The centrally located property includes on-site parking, a fitness center, and bike storage.
Says SL Green co-CIO Isaac Zion, “Prudential, our longtime partner at 100 Park Avenue, shared our vision for this prime Midtown asset. We are delighted to be partnering with them once again and look forward to creating value together.”
“We believe that Tower 46 is an excellent investment on behalf of our clients thanks to its modern architecture and amenities, efficient floorplates and central location in midtown Manhattan,” adds Kevin R. Smith, head of PREI Americas. “We look forward to expanding and strengthening our relationship with SL Green through this joint venture.”
Separately, SL Green announced that it would increase its stake in the 674,000-square-foot office condo at 1745 Broadway, which is leased entirely to Random House. The office REIT acquired a 32.26% stake in the property as part of a 2007 deal worth $520 million, and will now increase its ownership percentage to 56.88%, thius taking control of the property. The majority of the interests, consisting of general partnership and limited partnership interests, were purchased from the Witkoff Group in exchange for SL Green Operating Partnership units.
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