SL Green to Acquire Stake in Stonehenge's New York City Residential Portfolio
New York, NY – December 8, 2014 - SL Green Realty Corp. (NYSE: SLG), New York City’s largest commercial property owner, today announced that it has entered into an agreement to expand its presence in the New York City residential market by acquiring a stake in a 23-building, 2.55 million square foot portfolio comprised of 2,815 rental apartments and 43,000-square-feet of prime retail space. As a result of the transaction, SL Green will own a 50% share in both the partnership interests and promotes in the portfolio held through entities affiliated with Stonehenge with Ofer Yardeni retaining the other 50% ownership interest. In addition, the properties will continue to be managed and operated by Stonehenge and continue to be owned in partnerships with various institutional partners.
The purchase price will be primarily funded through the issuance of $40 million of preferred SL Green operating partnership units. The transaction is expected to close in the first quarter of 2015, subject to customary closing conditions.
David Schonbraun, SL Green’s Co-Chief Investment Officer, said, “This investment represents an incredible opportunity for SL Green to expand its residential portfolio in partnership with a proven operating partner. Over the past few years, we have developed a strong relationship with Ofer Yardeni and Stonehenge Partners. They are a best-in-class residential operator and we believe that together we can enhance the current portfolio’s value and build upon our previous successes.”
“Stonehenge is excited to partner with SL Green again, and this time, in a much greater capacity. I have had the pleasure of working with the company for many years and partnered with them in prior investments,” said Ofer Yardeni, Chairman and CEO of Stonehenge. “Their extensive experience and expertise in the real estate industry is unparalleled and will add lasting value to Stonehenge.”
The portfolio consists of properties located in the some of the best and most attractive submarkets of Manhattan, including Gramercy Park, the West Village, Chelsea, Murray Hill and the Upper East and West Sides.
FTI Consulting acted as advisor to the transaction.