The Real Deal New York

SL Green makes $146M retail play on Fifth Avenue

REIT inks series of deals with Gary Barnett's Extell

February 05, 2014 08:41AM

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From left: Marc Holliday, 560 Fifth Avenue and Gary Barnett

From left: Marc Holliday, 560 Fifth Avenue and Gary Barnett

SL Green Realty has paid $146.2 million to develop 45,000 square feet of retail space along Fifth Avenue, in a series of deals with Gary Barnett’s Extell Development.

At a low-rise building at 570 Fifth Avenue, Extell sold everything under 180 feet to SL Green for $34.9 million. And in a similar deal at 574 Fifth Avenue, Extell sold everything under 180 feet to SL Green for $43.8 million.

On 46th Street at 562 Fifth Avenue, SL Green paid $67.5 million for the land while Extell paid $11.7 million for the air rights above 180 feet, the New York Post reported. Barnett will use the air rights to build a new tower at West 46th Street just west of Fifth Avenue, according to the newspaper. The new tower will cantilever over a portion of the planned SL Green retail building.

SL Green CEO Marc Holliday had alluded to the assemblage in the company’s fourth-quarter earnings call last week. Holliday did not disclose details at the time, saying only that it was a “site with enormous upside,” and was “highly, highly under-utilized.” [NYP]  – Hiten Samtani

  • noone

    Savanah is groundleasing 576.I think you have the wrong building

    • Jonathan Yunason

      Good eye!

  • T

    who was broker on this?

    • Jonathan Yunason

      Off Market T.

      • T

        not true…. just not recognized

        • Jonathan Yunason

          You might be right…. Dov Hertz is on top of his game at Extell. I would not be surprised if he called Marc Holliday himself.

          • killa

            just spoke with dov – he said cap rate city was the broker

          • Jonathan Yunason

            Lol. if he said that then he owns cap rate city

          • T

            it was probably some small boutique firm who introduced to the deal at the time but they prob just ignore them and pretend they never spoke to them

          • brett

            tell me more?!

  • 5th Man

    Ike Chehebar sold Gary those buildings

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