In March 2004, the joint venture acquired the 292,000-sf officefor $67 million from EBS Forty Fourth Property Associates LLC. Atthat time Andrew Mathias, SL Green's chief investment officer, saidthe firm was attracted to the site located between Fifth Avenue andAvenue of the Americas because they had previously owned propertyon the same street and were aware of its potential. "It's a uniqueblock," he told GlobeSt.com. "With the university clubs and theRoyalton, it's more like an avenue than a side street."

The company does like the block because in February it acquired28 West 44th St., located across the street. Both properties arewithin two blocks of Grand Central Station and company officialsfeel the acquisitions enhance its "dominant presence" in the GrandCentral submarket with 14 properties totaling more than sevenmillion sf.

"This transaction offered us an opportunity to increase ourpresence in Midtown at an attractive off-market price that isfurther enhanced by the joint venture structure in which theproperty was previously owned," Matthias says. "We look to furthercapitalize on the economies of scale which our growing localportfolio provides." That portfolio now consists of 29 propertiesaggregating approximately 18.7 million sf.