Acadia pays SL Green Realty, partner $46.8M for retail co-op in Flatiron District

Acadia Realty Trust through the entity 85 Fifth Ave Property Owner LLC paid SL Green Realty and a partner through the entity 85 Fifth Avenue Retail Owner LLC $46.8 million for the 13,092-square-foot retail cooperative unit at 85 Fifth Avenue in Flatiron District, Manhattan. The property is leased long-term to Nespresso.
The deal closed on April 11, 2025 and was recorded on April 17, 2025.
SL Green bought the unit from Jeff Sutton in 2020 for $59 million.
SL Green reported the sale but not the buyer, in a recent filing, “In April, together with our joint venture partner, closed on the sale of 85 Fifth Avenue for a gross asset valuation of $47.0 million. The transaction generated net proceeds to the Company of $3.2 million.”
The property was marketed and the sale brokered by a CBRE team led by Daniel Kaplan and Doug Middleton. The unit has 50 feet of frontage on Fifth Avenue at the corner of East 16th Street.

The seller

The PincusCo database currently indicates that SL Green Realty owned at least 36 commercial properties with 892 residential units in New York City with 18,006,928 square feet and a city-determined market value of $7.7 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 93 percent of the 18,006,928 square feet of built space are office properties, with elevator properties next occupying 4 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Acadia Realty Trust owned at least seven commercial properties with 160 residential units in New York City with 297,571 square feet and a city-determined market value of $92.9 million. (Market value is typically about 50% of actual value.) The portfolio has $284.4 million in debt, with top three lenders as Bank of America, Bridge Investment Group, and TD Bank respectively. Within the portfolio, the bulk, or 38 percent of the 297,571 square feet of built space are retail properties, with D4 properties next occupying 31 percent of the space. The bulk, or 59 percent of the built space, is in Manhattan, with Queens next at 34 percent of the space.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Acadia Realty Trust purchased 16 properties in 10 transactions for a total of $246.2 million and sold two properties in one transaction for a total of $48.2 million over the past 24 months.
The seller SL Green Realty purchased 39 properties in six transactions for a total of $782.1 million and sold 10 properties in seven transactions for a total of $806.9 million over the same time period.

The property

The office building in Flatiron District has 103,022 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 49 feet and is 141 feet deep with a total lot size of 7,990 square feet. The lot is irregular. The property is in the Ladies’ Mile Historic District. The city-designated market value for the property in 2022 is $29.9 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $801 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Flatiron District, The majority, or 71 percent of the 23.2 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Flatiron District has 2.1 times the average sales volume among other neighborhoods with $568.5 million in sales volume in the last two years and is the 21st highest in Manhattan. For development, Flatiron District has 2.6 times the average amount of major developments relative to other neighborhoods and is the 11th highest in Manhattan. It had 3 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of eight of the 13 commercial properties representing 362,777 square feet of the 568,235 square feet. The largest owner is David Ellis Real Estate L.P., followed by Robert Mannheimer and then United American Land.
There are no active new building construction projects on this tax block.

The majority, or 52 percent of the 568,235 square feet of built space are office buildings, with elevator buildings next occupying 35 percent of the space.

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