SL Green Realty Corp. announced that it has entered into an agreement to acquire commercial condominium units in the Midtown Manhattan Gem Tower located at 55 West 46th Street for $275 million.
The company will acquire 319, 000 square feet consisting of vacant office space on the building’s upper floors 22 – 34, a retail store on 46th Street and the building’s parking garage and fitness center. As part of the agreement, the seller has the option to include the 2nd floor in the transaction, which consists of 28, 000 square feet, for an additional purchase price of $20 million. The transaction, which is subject to customary closing conditions, is expected to be completed before the end of 2014.
Owned by Extell, 55 West 46th was designed by Skidmore Owings & Merrill and completed in 2013. The glass and steel structure provides highly efficient column free space and floor-to-ceiling windows on all office floors with sweeping views of the New York City skyline. The centrally located property includes on-site parking, a fitness center, and bike storage.
Extell’s website boasts that the office tower is, “an environmentally sustainable, cutting-edge tower filed with abundant natural light and breathtaking views that complement the building’s column-free interiors, 10′ perimeter ceiling heights and floor-to-ceiling windows.”
“55 West 46th Street has been designed to cater to the demands of today’s leading businesses while providing the finest conveniences of the modern workplace, including high-speed destination dispatch elevators, a private health & fitness center, on-site valet parking and state-of-the-art security.”
SL Green President Andrew Mathias said, “This is a magnificent asset in the heart of Midtown Manhattan. The acquisition demonstrates our strength in sourcing and executing off-market transactions. Being able to acquire the most valuable office space, only the tower floors, of a newly constructed office building at a price that is significantly below replacement cost is a rare opportunity.”
He continued, “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.”