SL Green Realty Corp is to acquire 719 Seventh Avenue for USD41.1 million.
The transaction, which is subject to customary closing conditions, is expected to be completed during the second quarter of 2014.
The property, situated on the southeast corner of 48th Street and Seventh Avenue, features premier visibility looking north from the centre of the Times Square bowtie as well as south from 52nd down the Avenue. It is also on the same block as the recently announced Marriott Edition hotel that is currently under construction.
The site can accommodate a building up to 28,114 square feet in addition to LED signage towers, akin to those SL Green has constructed at 1551-1555 Broadway, 1515 Broadway and most recently at 1552-1560 Broadway.
SL Green intends to demolish the building in due course in order to take full advantage of the development rights.
This acquisition will further increase the size of SL Green’s retail property portfolio, which features substantial interests along New York City’s primary retail corridors. Recent investments include the retail space at 650 Fifth Avenue, 121 Greene Street, 115 Spring Street, and 131-137 Spring Street.
SL Green managing director Brett Herschenfeld says: “Times Square continues to evolve into a dynamic retail and commercial destination. We have made several timely and well-placed investments in the submarket, and in doing so, have substantially contributed to the area’s evolution. We’ve built flagships for Aeropostale, American Eagle, and Express, while also substantially changing the sights and sounds of the area with cutting edge LED signage at each site. With this acquisition, our participation and impact in the expanding retail district of Times Square continues.
“719 Seventh Avenue is a great addition to our expanding retail footprint and we are excited to grow our presence in Times Square, the official Crossroads of the World. We believe this acquisition once again demonstrates SL Green’s ability to identify unique, value-add, off-market transactions as well as utilise our extensive relationships within the New York Real estate community.”