SL Green Realty Corp. (SLG) disclosed that the company and its partner Jeff Sutton penned a deal to buy out the lease of retailer Juicy Couture at 650 Fifth Avenue. The deal follows the recent acquisition of a 49-year leasehold interest encompassing the whole retail section of 650 Fifth Avenue by the SL Green – Sutton venture.
The deal, in particular, would help unite Juicy Couture’s present basement, grade-level and second floor retail space with other vacant spaces on the third floor. This would help the partners reposition the retail corner site of the building.
As a matter of fact, the investment at 650 Fifth Avenue offers SL Green significant prospects to solidify its partnership in the renowned Fifth Avenue luxury retail corridor. The company already has notable presence in this region.
SL Green along with Sutton enjoys control over the 717 Fifth Avenue property, featuring the Giorgio Armani and Dolce & Gabbana flagships, 720 Fifth Avenue that houses retailer Abercrombie & Fitch Co. (ANF) and 724 Fifth Avenue that has Prada’s flagship store. Recently, SL Green along with its partner Jeff Sutton renewed the lease agreement with Prada at 724 Fifth Avenue and the lease deal now runs through 2028.
SL Green is further seeking to tap opportunities in New York City’s premium retail locations with investments that complement its core office and structured finance businesses. We believe that this diversification of investments in retail properties would offer SL Green sufficient growth prospects going forward.
SL Green currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the retail sector include Sabra Health Care REIT, Inc. (SBRA) and Chatham Lodging Trust (CLDT). While Sabra Health Care carries a Zacks Rank #1 (Strong Buy), Chatham Lodging holds a Zacks Rank #2 (Buy).
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