SL Green Realty and its partners have entered into a contract to sell the fee ownership interest in 625 Madison Ave. for $632.5 million, or $1,123 per square foot, to a global real estate investor. In connection with the sale, SL Green and its partners will originate a $234.5 million preferred equity investment in the property. Net proceeds from the sale will be used by the REIT for the repayment of corporate debt.
Located between 58th and 59th Street, 625 Madison Ave. is a 17-story, 563,000-square-foot office building with ground floor retail space. SL Green acquired its interest in the property through a previous mezzanine investment.
Separately, SL Green and Vornado Realty Trust announced that they have signed a 15-year renewal and expansion lease with a financial services tenant covering 269,905 square feet on six floors at 280 Park Ave. Spanning the entire block front of Park Avenue between 48th and 49th Streets, 280 Park Avenue is a 1.25 million-square-foot Midtown Manhattan office building owned in joint venture between SL Green and Vornado.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
