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SL Green Sells 625 Madison Ave. for $632.5M

SL Green Realty and its partners have entered into a contract to sell the fee ownership interest in 625 Madison Ave. for $632.5 million, or $1,123 per square foot, to a global real estate investor. In connection with the sale, SL Green and its partners will originate a $234.5 million preferred equity investment in the property. Net proceeds from the sale will be used by the REIT for the repayment of corporate debt.

Located between 58th and 59th Street, 625 Madison Ave. is a 17-story, 563,000-square-foot office building with ground floor retail space. SL Green acquired its interest in the property through a previous mezzanine investment.

Separately, SL Green and Vornado Realty Trust announced that they have signed a 15-year renewal and expansion lease with a financial services tenant covering 269,905 square feet on six floors at 280 Park Ave. Spanning the entire block front of Park Avenue between 48th and 49th Streets, 280 Park Avenue is a 1.25 million-square-foot Midtown Manhattan office building owned in joint venture between SL Green and Vornado.

The tenant was represented by Mary Ann Tighe, Ken Meyerson, Brendan Herlihy, Eric Thomas and Marlee Teplitzky of CBRE together with Evan Margolin of JLL, while the joint venture was represented by Glen Weiss and Steven Durels along with the CBRE team of Peter Turchin, Greg Rothkin and Jason Pollen.

 And in a third deal, SL Green reported that Stonepeak Partners has signed a new 76,716 square foot, 15-year lease covering the entire 31st and 32nd floors at 245 Park Avenue. To date in 2023, SL Green has signed leases totaling 199,872 square feet in the building.

245 Park Avenue is a 1.8 million-square-foot, Class A office building located directly across from JP Morgan Chase’s new world headquarters. Stonepeak Partners was represented by Silvio Petriello, Ben Friedland and Tamika Kramer of CBRE, and the landlord was represented by Patrick Murphy, Bruce Mosler, Tara Stacom, Harry Blair, Ron LoRusso, Justin Royce and Will Yeatman of Cushman & Wakefield.
Reprinted with permission from the Mon, 04 Dec 2023 07:45:00 EST online edition of GlobeSt © 2024 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-256-2472 or reprints@alm.com.