FRANKFURT—Madison International Realty has closed on its sale of the landmark Trianon Office Tower to NorthStar Realty Finance Corp. The two New York City-based firms had agreed on a EUR 540-million (approximately US$589 million) deal for the 47-story office property, which is anchored by DekaBank, this past June.

Madison, which owned the Trianon tower in partnership with the Morgan Stanley Eurozone Office Fund, came into the picture in 2012 by acquiring a stake. The tower had been owned by two open-ended property funds since 2006.

"At the time of purchase, we were certain that, with the right partners and the right business plan, we would be able to increase the value of this prestigious building in the financial district of Frankfurt,” says Ronald Dickerman, Madison's founder and president. “The successful sale confirms that our strategy was well-chosen.”

Upon acquiring its stake in the tower, Madison began a repositioning campaign, with the slogan “rebirth of an icon." The new ownership tapped Bilfinger Real Estate Argoneo GmbH as asset manager for a program that included modernization of the entrance and lobby and LEED Gold certification. Last year, the German Central Bank signed on for approximately 161,000 square feet of space.

At present, the tower is 98.5% leased; it was 85% leased when Madison acquired its stake. In its focus of acquiring direct secondary equity interests, Madison has been supported by Cologne-based Art-Invest Real Estate, which also participated in the transaction. BNP Paribas and CBRE advised the owners during the sale process.