Tower 46

SL Green, Prudential Form JV for Tower 46 Office Condo Units in Manhattan

by John Nelson

NEW YORK — SL Green Realty Corp. (NYSE: SLG), New York City’s largest commercial property owner, and Prudential Real Estate Investors, the real estate investment management and advisory business of Prudential Financial Inc. (NYSE: PRU), have formed a joint venture for the ownership of condominium units at Tower 46, located at 55 W. 46th St. in Manhattan. The units span 347,000 square feet with office space on floors two and 22-34 and retail space at grade on 46th Street.

SL Green announced its acquisition of the Class A asset for $295 million in September and completed that transaction in October. A fund managed by PREI on behalf of institutional investors now owns a 75 percent stake under the terms of the new joint venture, with SL Green keeping 25 percent ownership and retaining management and leasing responsibilities.

“Prudential, our longtime partner at 100 Park Ave., shared our vision for this prime Midtown asset,” says Isaac Zion, co-chief investment officer of SL Green. “We are delighted to be partnering with them once again and look forward to creating value together.”

Skidmore Owings & Merrill designed the tower, which was completed in 2013. The glass and steel structure features floor-to-ceiling windows on all office floors with views of the New York City skyline, on-site parking, a fitness center and bike storage.

“We believe that Tower 46 is an excellent investment on behalf of our clients thanks to its modern architecture and amenities, efficient floorplates and central location in midtown Manhattan,” says Kevin Smith, head of PREI Americas. “We look forward to expanding and strengthening our relationship with SL Green through this joint venture.”

Prudential Real Estate Investors has more than 650 employees located in 20 cities around the world, and gross assets under management of $59.3 billion as of June 30, 2014.

SL Green Realty Corp. is a fully integrated real estate investment trust (REIT) that is focused primarily on acquiring and managing Manhattan commercial properties. As of Sept. 30, 2014, SL Green held interests in 96 Manhattan buildings totaling 44.1 million square feet. In addition to its Manhattan investments, SL Green held ownership interests in 35 suburban buildings totaling 5.9 million square feet in Brooklyn, Long Island, Westchester County, Connecticut and New Jersey.

SL Green’s stock price closed Friday, Dec. 5 at $119.48 per share, up from $93.49 per share at this time last year.

— John Nelson

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