SL Green Takes 625 Madison Leasehold for $232M

NEW YORK CITY-Expanding its Midtown presence, SL Green Realty Corp. acquired a 100%, 50-year leasehold interest in the 558,000-sf 625 Madison Ave. for $231.5 million, or approximately $415 per sf. REIT officials call the acquisition of the former Revlon building a “strategic addition in the prominent Plaza submarket.”

The 17-story Plaza district building, located across from the GM building, is home to tenants such as Polo Ralph Lauren, Wachovia Corp. and the Neiman Marcus Group as well as 53,000 sf of retail space. Cushman & Wakefield executive directors Jonathan Serko and Ron Cohen represented the seller. Serko, who directed the marketing and leasing of the property on behalf of the previous owner–an investment entity operating as 625 Madison Avenue Associates LLC–was awarded the leasing agency assignment on behalf of the new ownership, along with a Cushman & Wakefield team consisting of Barry Zeller and David Malawer.

“This transaction is in alignment with the improving Manhattan office market in that we will have the opportunity to create immediate value by leasing current and near-term vacancies at rising office and retail rents,” says Marc Holliday, chief executive officer of SL Green.