NEW YORK — SL Green Realty Corp. (NYSE: SLG) has agreed to acquire The Olivia, a mixed-use property on Manhattan’s west side, for $386 million. The deal further diversifies the portfolio of the real estate investment trust, which touts itself as New York City’s largest office landlord.
New York-based real estate company Stonehenge currently owns The Olivia, according to Bloomberg.
“We see this acquisition as a great opportunity to expand our multifamily investment platform at a time when the New York residential market is strong,” says Andrew Mathias, president of New York-based SL Green. “The property is located in a neighborhood that is expected to absorb thousands of new jobs during the next decade. With those jobs, the local demand for luxury housing also is expected to climb sharply.”
The Olivia totals 36 stories and 492,987 square feet, the residential portion of which consists of 333 rental apartments in studio, one- and two-bedroom configurations. Among the amenities are a doorman-attended lobby, valet and concierge services, top-floor health club and social lounge and rooftop sundeck. According to the property’s website, rents start at $2,850 for a studio apartment.
The building’s commercial space, which takes up 270,000 square feet of the total area, comprises five retail stores, two office suites and a 14-screen movie theater. SL Green’s acquisition also includes The Olivia’s 250-space parking garage and an adjacent lot.
“The property is strategically situated on the 34th Street retail corridor, which continues its westward expansion,” says Mathias. “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.”
SL Green currently owns interests in 87 properties in Manhattan totaling 42.8 million square feet. The trust also holds ownership interests in 36 suburban assets in Brooklyn, Long Island, Westchester County, Connecticut and New Jersey and 30 properties in Southern California.
SL Green’s stock price closed at $89.45 per share Wednesday, up from $80.43 per share a year ago.
– John McCurdy