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NEW YORKCITY-SL Green Realty Corp. has acquired a 49.9% interest in 1250 Broadway from its joint venture partner, private equity firm the Washington, DC-based Carlyle Group, for approximately $29.5 million. In a separate but related transaction, Green obtained an $85-million mortgage on the property.

The 685,000-sf tower located between 31st and 32nd streets, purchased in 1999 for $93 million and currently valued at $121 million, is 99.6% leased. Completed in 1969 from a design by venerated architectural firm Shreve, Lamb & Harmon Associates, the 40-story building is undergoing a $5 million capital improvement program. Asking rents on available space are $25 to $48 per sf.

In conjunction with the acquisition deal, real estate investment banking firm Sonnenblick-Goldman arranged an $85 million first mortgage for the property. Sonnenblick was represented by managing director Morton Holliday and director Mark Ehlinger. Salomon Smith Barney provided the financing. The intended use for the funds is not known.

According to a statement by SL Green president Marc Holliday, the acquisition is part of an ongoing plan at the REIT “to consolidate its interests in jointly owned properties in a highly efficient manner. It is the first step in transitioning 1250 Broadway to long-term ownership, potentially with a new capital partner.” It is not known how much of a stake in the building Green owned prior to the deal nor whether a new partnership deal is in the works. Holliday cited as assets the building’s proximity to Penn Station, strong tenant roster and large floor plates.

SL Green is a self-administered, self-managed REIT that primarily owns, manages and repositions office properties in Manhattan. The Carlyle Group is a private global investment firm that originates and acts as lead equity investor in management-led buyouts and other equity investments. Neither company returned calls for comment.

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