The Real Deal New York

SL Green to pay $275M for upper floors at Extell’s gem tower

Previous reports estimated size of deal for 50 West 47th Street would be closer to $400M
September 16, 2014 10:00AM

Real estate investment trust SL Green Realty has acquired the upper floors of Extell Development’s International Gem Tower. Those floors have failed to attract tenants since hitting the market.

In a deal worth $275 million, SL Green will purchase 319,000 square feet of office space on floors 22 to 34 of the tower at 50 West 47th Street, which also has an address at 55 West 46th Street, according to a statement from the company. The space was previously marketed as rentals by Cushman & Wakefield.

“We believe this transaction will once again allow us to showcase two of our greatest strengths: SL Green’s proven ability to lease office space and create value,” said SL Green president Andrew Matthias in the statement.

SL Green will also pick up a retail store on 46th Street and the building’s parking garage and fitness center. In addition, Extell has the option of purchasing another 28,000 square feet of space on the second floor of the building for an additional $20 million.

Previous reports placed the deal at as much as $400 million. — Tom DiChristopher