SL Green sells 49% stake in 400 East 57th Street to Blackrock unit
October 19th, 2016 – SL Green sold a 49 percent stake in rental building Stonehenge 57 to a unit of investment management firm Blackrock.
The transaction, which essentially forms a joint venture between the two companies, has a gross asset valuation of $170 million, according to a press release. The buyer was Blackrock real estate and infrastructure arm Blackrock Real Assets.
“Investor demand for high-quality, well-located rental apartments in Manhattan continues to be robust,” said David Schonbraun, SL Green’s co-chief investment officer. “We are delighted to have BlackRock as a partner in the asset. Along with our current partner, Stonehenge Partners, we have been able to create value through renovating and repositioning the property. This transaction allows us to capitalize on some of the value created, while maintaining future upside through our remaining equity stake.”
Stonehenge 57, located at 400 East 57th Street in the east side of Manhattan, contains 261 luxury apartment units and 13,772 square feet of ground floor retail. The 19-story building, which sits on First Avenue and covers the entire block between 56th and 57th Streets, was purchased by Stonehenge Partners and SL Green in 2012. The property was acquired along with six other multifamily and retail properties in Manhattan. The purchase price was reportedly $109 million.
Aside from the new joint venture, the property also generated a 10-year $100 million mortgage loan from New York Community Bank. Andrew Scandalios and Rob Hinckley of HFF represented SL Green on the transaction.