Pace finalizes $42M deal for Downtown dorm space

Transaction put together by SL Green, Jeff Sutton said to be more like a long-term lease

New York /
Mar.March 13, 2014 06:42 PM

SL Green Realty, Jeff Sutton and a large Israeli insurance firm conveyed an unusual type of condominium interest for the dormitory portion of the newly-constructed, Lower Manhattan tower at 182 Broadway valued at $42.1 million to Pace University, according to sources and city records.

SL Green and partners constructed the 23-story building at the corner of Broadway and John Street, which was completed in 2013, and divided it into one retail and one dormitory condominium unit.

In this transaction, Pace effectively acquired a form of lease on the dorm condo unit, which covers floors four through 23, while SL Green, Harel and Sutton remain in control of the lower level through the third floor, insiders said.

Pace signed a contract in June 2013 to buy the dormitory condo portion of the building, and closed on the deal Feb. 27, city records filed today show. Despite the filing of a deed recording the condo transfer, insiders said the transaction was more nuanced, and was more akin to a long-term lease.

SL Green, retail investor Sutton and Harel Insurance Investments & Financial Services control a company that owns the property in fee but leases it for approximately 30 years to another entity they control, city records show. That entity, in turn, has sold the dorm condo unit to Pace, city records reveal.

Pace opened the 228-apartment dorm with room for 600 students last fall.

Pace, SL Green and Sutton declined to comment. Harel could not be reached for comment.


Related Articles

arrow_forward_ios
The Daily News Building at 220 East 42nd Street and SL Green CEO Marc Holliday (Credit: Getty Images)
SL Green puts Daily News building up for sale
SL Green puts Daily News building up for sale
SL Green snags private-equity firm at One Vanderbilt
SL Green snags private-equity firm at One Vanderbilt
SL Green snags private-equity firm at One Vanderbilt
SL Green’s locks in big bank lease at Hudson Yards redevelopment site
SL Green’s locks in big bank lease at
Hudson Yards redevelopment site
SL Green’s locks in big bank lease at
Hudson Yards redevelopment site
Jeff Sutton of Wharton Properties with 103 North Fourth Street. (Google Maps)
Jeff Sutton sells $31M stake in Williamsburg property
Jeff Sutton sells $31M stake in Williamsburg property
Jeff Sutton and 724 Fifth Avenue (Wharton Properties, iStock, Google Maps)
Jeff Sutton lands $235M refinancing on 724 Fifth
Jeff Sutton lands $235M refinancing on 724 Fifth
106 Spring Street with SL Green's Marc Holliday of SL Green and Paceline Equity Partners' Sam Loughlin (Google Maps, iStock)
One of Soho’s priciest retail spaces sells at UCC foreclosure auction
One of Soho’s priciest retail spaces sells at UCC foreclosure auction
SL Green's Marc Holliday and Brookfield Asset Management's Bruce Flatt with Tower 46. (SL Green, Brookfield)
SL Green to sell its 25% stake in Tower 46 to Brookfield
SL Green to sell its 25% stake in Tower 46 to Brookfield
SL Green CEO Marc Holliday with 11 Madison Avenue and 100 Park Avenue (SL Green, Google Maps/Illustration by Alexis Manrodt for The Real Deal)
SL Green sees improved “market vibe,” office return in “a blink of an eye”
SL Green sees improved “market vibe,” office return in “a blink of an eye”
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...