SL Green Realty Corp. is teaming up with Stonehenge Partners to redevelop a former residence for St. Luke’s Hospital Center staff into luxury apartments. The building, at 1080 Amsterdam Avenue, will be obtained by the two, via a 99-year ground lease, and then redeveloped. Total cost of the investment is estimated to be $13 million.
It’s the second time in as many years that the two companies have teamed up.
Ofer Yardeni, a Stonehenge managing partner, said that the relationship with SL Green “is certainly off to a great start.” The project at 1080 Amsterdam Avenue follows on the heels of 2011’s purchase of eight retail and multifamily properties. The crown jewel of that $416 million deal was 724 Fifth Avenue—home of Prada—but it also included 402 rental units in Midtown and on the Upper West Side.
“Capitalizing on our respective strengths, we seek to take advantage of the best property ownership opportunities, acquire those properties, and then maximize value in ways that appeal to tenants while also meeting our objectives as investors,” Mr. Yardeni continued. “Together, we believe we are building a strong foundation for long-term success.”
1080 Amsterdam totals 82,250 square feet and there are 96 apartment units in the building. The partnership’s plans for the property include window improvements, corridor upgrades and upgrades to elevator, heating and electrical systems. It’s expected to take two years, from start to finish.