New Terms for SL Green and Sutton 717 Fifth Avenue Retail Condo
SL Green Realty Corp. said Wednesday that it had, along with partner Jeff Sutton, restructured and recapped the retail condo at 717 Fifth Avenue, home of Dolce & Gabbana, Armani and Escada.
The REIT bought an interest in the 123,000-square-foot, four-floor property in 2006 for about $230 million. In this most recent transaction, it sold 50 percent of its interest there to Mr. Sutton, retaining a 10.92 percent stake. The price of that sale values the retail at 717 Fifth at $618 million.
Additionally, the property was recapped via $590 million in new financing. New York Life and TIAA-CREF provided a $300 million fixed-rate mortgage for a 10-year term, while RREEF originated a $290 million mezzanine loan for a 12-year term.
“Our joint venture investment with Jeff Sutton at 717 Fifth Avenue has been a resounding success, as evidenced by the realization of net operating income through creative repositioning and leasing over the past six years,” said SL Green president Andrew Mathias. “The result is a sizable gain in asset value, as recognized by our lenders, as well as our ability to monetize a portion of our position and generate substantial cash proceeds.”
The net proceeds for SL Green that resulted from the transaction were $85 million.