SL Green Sells Retail Condo for $168M; Moves Forward with $2.3B One Madison Ave. Project

609 Fifth Ave. Photo by SL Green.

NEW YORK—SL Green Realty has announced two deals in the last 24 hours. In one, the REIT has entered into a contract to sell its recently repositioned 609 Fifth Ave. retail condominium for $168 million to an affiliate of the Reuben Brothers. In the second, announced this morning, SL Green reports that it has sold a 49.5% interest in One Madison Ave. to the National Pension Service of Korea and Hines Interest LP. SL Green and Hines will co-develop a $2.3 billion project at the site, which will span 1.4 million rentable square feet upon completion.

609 Fifth Ave.

The first transaction is scheduled to close in the second quarter of 2020.

Starting in 2018, SL Green began repositioning the building, located at the corner of Fifth Avenue and 49th Street in the heart of Manhattan’s Gold Coast. It vacated the previous tenants in the office condominium portion of the property and relocated the office lobby onto 49th Street, increasing the retail frontage on Fifth Avenue. Then two new premier tenants were secured for the retail condominium: a 15-year, 24,000 square-foot flagship lease with sports apparel brand PUMA, which has a three-level retail space with double-height storefronts across 160 feet of wraparound frontage, and a 10-year, 5,000 square-foot lease with Vince, a global luxury apparel and accessories brand.