NEW YORK–(BUSINESS WIRE)–
SL Green Realty Corp. (NYSE:SLG), New York City’s largest commercial
property owner, and BlackRock Real Assets, the real assets arm of
BlackRock, Inc. (NYSE:BLK), a global leader in investment management,
today announced the formation of a joint venture for the ownership of
400 East 57th Street, a rental apartment property located in
Manhattan. The transaction constitutes a sale by SL Green of a 49%
ownership interest in the entity to an investment account managed by
BlackRock at a gross asset valuation of $170 million.
In conjunction with the recapitalization of the property, New York
Community Bank provided a 10-year $100 million mortgage loan at a 3%
fixed interest rate.
“BlackRock continues to target high-quality assets in major markets as a
means of seeking to deliver attractive risk-adjusted returns to our
clients. The 400 East 57th Street investment fits very
favorably within our investment strategy given its gateway market
location, current income, and the potential for future value creation.
We are excited about the opportunity to partner with SL Green. The
partnership expects to continue to add value through a unit upgrade
program and enhancement to the common areas and amenities,” said
Benjamin Young, Managing Director and Head of US Real Estate Separate
Accounts at BlackRock Real Assets.
“Investor demand for high-quality, well-located rental apartments in
Manhattan continues to be robust,” commented SL Green co-Chief
Investment Officer, David Schonbraun. “We are delighted to have
BlackRock as a partner in the asset. Along with our current partner,
Stonehenge Partners, we have been able to create value through
renovating and repositioning the property. This transaction allows us to
capitalize on some of the value created, while maintaining future upside
through our remaining equity stake.”
400 East 57th Street is located on First Avenue and
encompasses the entire east side of the block between 56th
and 57th streets, featuring 261 luxury apartment units and
13,772 square feet of ground floor retail.
Andrew Scandalios and Rob Hinckley of HFF represented SL Green on the
transaction.
About SL Green Realty Corp.
SL Green Realty Corp., an S&P 500 company and New York City’s largest
office landlord, is a fully integrated real estate investment trust, or
REIT, that is focused primarily on acquiring, managing and maximizing
value of Manhattan commercial properties. As of June 30, 2016, the
Company held interests in 119 Manhattan buildings totaling 44.7 million
square feet. This included ownership interests in 28.0 million square
feet of commercial buildings and debt and preferred equity investments
secured by 16.7 million square feet of buildings.
In addition, the Company held ownership interests in 31 suburban
buildings totaling 4.9 million square feet in Brooklyn, Long Island,
Westchester County, Connecticut and New Jersey.
About BlackRock
BlackRock is a global leader in investment management, risk management
and advisory services for institutional and retail clients. At September
30, 2016, BlackRock’s AUM was $5.1 trillion. BlackRock helps clients
around the world meet their goals and overcome challenges with a range
of products that include separate accounts, mutual funds, iShares®
(exchange-traded funds), and other pooled investment vehicles. BlackRock
also offers risk management, advisory and enterprise investment system
services to a broad base of institutional investors through BlackRock
Solutions®. As of September 30, 2016, the firm had approximately 13,000
employees in 30 countries and a major presence in global markets,
including North and South America, Europe, Asia, Australia and the
Middle East and Africa. For additional information, please visit the
Company’s website at www.blackrock.com
| Twitter: @blackrock_news | Blog: www.blackrockblog.com
| LinkedIn: www.linkedin.com/company/blackrock
About BlackRock Real Assets
BlackRock, the largest investment manager in the world, sits at the
intersection of global capital and Real Asset investing opportunities.
With deep industry expertise, demonstrated access to proprietary deals
and a purely fiduciary mindset, its experienced investment professionals
leverage BlackRock’s risk management capabilities, global reach and deep
local presence to deliver compelling investment opportunities to meet
clients’ needs. BlackRock provides investors with Private Real Estate
Debt & Equity, Real Estate Securities and Infrastructure Debt & Equity
via funds, co-investments and managed accounts, and currently has over
$30 billion in invested and committed Real Estate and Infrastructure
assets and capital as of September 30, 2016. Its approximately
300-person team is based in 22 offices globally.
Forward-looking Statements
This press release includes certain statements that may be deemed to be
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995 and are intended to be covered
by the safe harbor provisions thereof. All statements, other than
statements of historical facts, included in this press release that
address activities, events or developments that we expect, believe or
anticipate will or may occur in the future, are forward-looking
statements. Forward-looking statements are not guarantees of future
performance and we caution you not to place undue reliance on such
statements. Forward-looking statements are generally identifiable by the
use of the words “may,” “will,” “should,” “expect,” “anticipate,”
“estimate,” “believe,” “intend,” “project,” “continue,” or the negative
of these words, or other similar words or terms. Forward-looking
statements contained in this press release are subject to a number of
risks and uncertainties, many of which are beyond our control, that may
cause our actual results, performance or achievements to be materially
different from future results, performance or achievements expressed or
implied by forward-looking statements made by us. Factors and risks to
our business that could cause actual results to differ from those
contained in the forward-looking statements are described in our filings
with the Securities and Exchange Commission. We undertake no obligation
to publicly update or revise any forward-looking statements, whether as
a result of future events, new information or otherwise.
SLG-FIN
View source version on businesswire.com: http://www.businesswire.com/news/home/20161019006430/en/
David Schonbraun
Co-Chief Investment Officer
or
Matt
DiLiberto
Chief Financial Officer
212.594.2700
Source: SL Green Realty Corp.
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