{"id":1004692713,"date":"2023-12-04T08:46:30","date_gmt":"2023-12-04T16:46:30","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004692713"},"modified":"2023-12-04T09:51:26","modified_gmt":"2023-12-04T17:51:26","slug":"sl-green-sells-625-madison-ave-inks-new-leases","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/sl-green-sells-625-madison-ave-inks-new-leases\/","title":{"rendered":"SL Green Sells Manhattan Tower for $633M"},"content":{"rendered":"
\"\"<\/a>

625 Madison Ave. Image courtesy of CommercialEdge<\/em><\/p><\/div>\n

SL Green Realty Corp<\/strong>. has agreed to sell the fee ownership interest in 625 Madison Ave., a 17-story, 563,000-square-foot Class A+ office building in Midtown Manhattan.<\/p>\n

The borough\u2019s largest office landlord and its partners are selling the property to an undisclosed buyer for $632.5 million, at a value of $1,123 per square foot. As part of the sale, SL Green will originate a $234.5 million preferred equity investment in the property, and will use the net proceeds to repay corporate debt.<\/p>\n

The end of a lengthy battle<\/h2>\n

The transaction follows a decade-long battle for the building\u2019s ownership rights, which SL Green acquired in full earlier this year in August. SL Green had acquired the leasehold to 625 Madison in 2004 for $230 million, according to CommercialEdge information.<\/p>\n

Nine years later, Ashkenazy Acquisition Corp<\/strong>. purchased the ground under the building for $400 million, financed in part with a $195 million mezzanine loan from Children\u2019s Investment Fund<\/strong>, according to a report from The Real Deal<\/em>. Initially, the firm\u2019s intent was to replace the tower with luxury condominiums, anticipating a significant increase in rent in 2022. In 2018, the firm defaulted on a $40 million debt repayment, and SL Green purchased a majority stake of Ashkenazy\u2019s debt a year later. In June of this year, SL Green and its partners foreclosed on the loan, after a $20.25 million rent reset, leading to an auction that ran through August, where the firm took over the entirety of Ashkenazy\u2019s ownership.<\/p>\n

\n

READ ALSO: <\/strong>SL Green President to Step Down<\/span><\/a><\/p>\n

\n

The sale is one of the city\u2019s largest office deals this year, at a time when the sector is reeling from high interest rates, little available debt and financing options, as well as low occupancy rates. Still, SL Green has remained active throughout 2023. In September, the landlord put the finishing touches on the $2.3 billion redevelopment<\/a> of One Madison Avenue, a 1.4 million-square-foot historic office building in Gramercy Park. In June, the firm sold roughly half of its ownership equity<\/a> in 245 Park Ave. to Mori Trust Co.<\/p>\n

625 Madison, at a glance<\/h2>\n

625 Madison was built in two phases in 1930 and 1956, and underwent a complete renovation in 1988, CommercialEdge data shows. Ralph Lauren, the building\u2019s longtime tenant, vacated its 300,000-square-foot space in 2019. Current office tenants include Firmenich Inc., while LAVO, Fratelli Rosetti and Bascome all operate retail spaces on the ground floor. Around Midtown, the building has access to myriad luxury retail, dining and transportation options, and Central Park lies under a quarter mile to the northwest.<\/p>\n","protected":false},"excerpt":{"rendered":"

The sale concludes a decade of twists and turns related to the Midtown property\u2019s ownership.<\/p>\n","protected":false},"author":3012,"featured_media":1004692716,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21783,1600,21742,10,21747],"tags":[36651,52255,34964],"class_list":["post-1004692713","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-investment","category-new-york","category-latest","category-northeast","category-office","tag-ashkenazy-acquisition-corporation","tag-childrens-investment-fund","tag-sl-green-realty-corp"],"acf":[],"yoast_head":"\nSL Green Sells Manhattan Tower for $633M - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"SL Green Realty Corp. has entered a contract to sell the fee ownership in 625 Madison Ave., a Class A+ office building in Midtown Manhattan.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/sl-green-sells-625-madison-ave-inks-new-leases\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SL Green Sells Manhattan Tower for $633M\" \/>\n<meta property=\"og:description\" content=\"SL Green Realty Corp. has entered a contract to sell the fee ownership in 625 Madison Ave., a Class A+ office building in Midtown Manhattan.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/sl-green-sells-625-madison-ave-inks-new-leases\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2023-12-04T16:46:30+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-12-04T17:51:26+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/12\/2023-12-04_10-36-57-e1701704325148.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"898\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Gabriel Frank\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/sl-green-sells-625-madison-ave-inks-new-leases\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/sl-green-sells-625-madison-ave-inks-new-leases\/\",\"name\":\"SL Green Sells Manhattan Tower for $633M - 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