551 Madison Ave. was built as a hotel in the 1920s.

NEW YORK CITY-CBRE Group Inc. said Friday afternoon it had completed the $128-million sale of 551 Madison Ave., a 150,000-square-foot office property, to Cornerstone Properties. A CBRE team of vice chairmen Darcy Stacom and Bill Shanahan and SVP Paul Gillen represented seller LaSalle Investment Management.

“Clearly, 551 Madison is a fantastic boutique office building with a great location,” Stacom says in a release. “We are thrilled to have brought together two important clients to complete this sale.” 

Lacoste USA is the largest tenant in the 150,000-square-foot, 17-story 551 Madison. The designer clothing brand renewed its lease three years ago, moving to the top five floors and occupying 35,000 square feet of rebuilt space there in a deal that will keep it there through 2023.

CBRE says 551 Madison is currently is 91% occupied. The sale, which was first reported in the New York Post last Wednesday, closed on Dec. 27, 2012.

Located at the corner of Madison and 55th Street, 551 Madison started life as a hotel in the early 1920s. It was built in 1921 as one of the Allerton Houses, a chain of moderately-priced hotels for white-collar workers developed by James S. Cushman, a member of the Society of Mayflower Descendants. It was renamed the Winslow Hotel in the 1930s after the Allerton corporation failed amid the Great Depression, and converted to office space in 1982.