SL Green Buys 1 Madison for $918M

NEW YORK CITY-SL Green inked a deal for the fee interest in 1 Madison Ave. for $918 million from MetLife. One Madison is two contiguous buildings totaling 1.4 million sf occupying an entire city block between Madison Avenue and Park Avenue South between 23rd and 24th streets.

In an UpClose interview with GlobeSt.com, Marc Holliday, president and chief executive officer of SL Green, labeled Manhattan “the best office market in the country.” Of this acquisition he says he expects the acquisition “will provide a steady stream of earnings for years to come, along with substantial upside in conversion and development opportunities.”

The 1.2-million-sf South Building is 95.5% net leased to Credit Suisse First Boston through 2020, while the 267,000-sf North Tower is zoned for residential and office use. The locally based REIT will initially own 100% of the office component of the project, but intends to bring in a partner for up to a 50% interest.