SL Green has won full control of 625 Madison Avenue in a foreclosure auction held at the property last week and gaveled to order by Matthew Mannion of Mannion Auctions.
The auction is the denouement of a simmering years-long rent dispute between SL Green, which controlled the building under a long-term lease, and Ashkenazy Acquisition Corp., which bought the fee interest in 625 Madison in 2013 for $400M—anticipating a huge rent reset in 2020 as a prelude to plans to replace the building with a condo tower.
Prior to the rent reset, SL Green was paying $4.5M annually. As the reset approached in 2019, the Manhattan-based REIT bought a stake in a $194M mezzanine loan that had been provided to Ashkenazy by a group of lenders including Children's Investment Fund and Winthrop Realty Trust, TheRealDeal reported.
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