SL Green picks up Stonehenge’s Olivia for $386M
Purchase of Midtown West apartment building partly motivated by proximity to Hudson Yards
SL Green Realty has agreed to purchase the Olivia, a 333-unit apartment tower at 315 West 33rd Street, from Stonehenge Partners for $386 million, Crain’s reported.
Stonehenge, led by Ofer Yardeni and Joel Seiden, completed the 492,987-square-foot, 36-story building last year. Its 270,000 square feet of commercial space currently houses a movie theater, two office suites, retail stores and a parking garage.
“We see this acquisition as a great opportunity to expand our multifamily investment platform at a time when the New York City residential market is strong,” SL Green President Andrew Mathias said in the statement.
Stonehenge and SL Green have been frequent partners before, including in a luxury residential project in Morningside Heights and in the purchase of an Upper East Side portfolio that included an Armani store.
The purchase adds to SL Green’s recent flurry of apartment building acquisitions. The company, New York City’s biggest office landlord, signed leases totaling nearly 600,000 square feet of space in the first quarter of 2013.
Commercial space is 100 percent leased in the building, at below-market rates, SL Green said. Rents for a one-bedroom apartment in the building currently start at $3,495 per month, according to the Stonehenge website, cited by Crain’s.
Named after Yardeni’s daughter and located between Eighth and Ninth avenues, the Olivia is near Related Companies’ Hudson Yards project.
“The anticipated substantial increase in pedestrian traffic between Penn Station and Hudson Yards is likely to strengthen that retail corridor, which we believe will significantly enhance the value of this property’s retail component,” Mathias told Crain’s. [Crain’s] — Julie Strickland