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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
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.