NEW YORK CITY–SL Green Realty Corp. is selling the fee interest at 635 Madison Ave. for $151 million. The transaction is expected to close in the third quarter of 2018. SL Green purchased the fee interest in 2014 for $145 million. Although the real estate company declined to provide additional information, The Real Deal reported the buyer as iStar.
Adam Spies and Doug Harmon of Cushman & Wakefield represented SL Green.
Real Capital Analytics notes that BlackRock Realty in a joint venture with L&L Holding sold the property to SL Green. The 19-story building at 635 Madison Ave. stands between E. 59th and E. 60th streets in Manhattan's Plaza District.
SL Green also gives its regards to Broadway in announcing it acquired a leasehold interest at 2 Herald Square. The real estate firm made a successful bid at the asset's foreclosure. SL Green formed a joint venture on the asset with an Israeli-based institutional investor, subsequent to closing on the acquisition.
The 11-story structure is located at the intersection of Sixth Avenue, Broadway and 34th Street. The 369,000 square-foot office and retail building has tenants including WeWork, Amazon, Victoria's Secret and Mercy College. SL Green notes the foot traffic along the 34th Street corridor exceeds 100 million people per year.
SL Green declined to provide additional details regarding the deal. However, in October 2017, The Real Deal had reported when the property was on the verge of foreclosing, a judge approved the preferred equity owner the Paramount Group's plans to bid on the leasehold. The article noted Sitt Asset Management owned the leasehold.
The publication reported SL Green bought the building's defaulted $250 million mortgage in May and was expect to start foreclosure proceedings if Paramount did not close the deal in the fall of 2017. The Real Deal also stated 59,000 square feet of retail space in 2 Herald Square had remained vacant for more than a year and a half.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
