SL Green Sells Retail Condo for $168M; Moves Forward with $2.3B One Madison Ave. Project
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…
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.
CBRE’s Darcy Stacom, Doug Middleton and David Fowler represented SL Green in the transaction.
One Madison Ave.
SL Green CEO and Chairman Marc Holliday notes that NPS and Hines partnered with the REIT at its iconic development at One Vanderbilt Ave. “We are extremely pleased to bring this world-class team and partnership together again to deliver One Madison Avenue, Midtown South’s most ambitious adaptive-reuse project,” he said in prepared remarks.
Kohn Pedersen Fox Associates, which is also the lead architect at One Vanderbilt, will lead the redesign of One Madison Avenue. The reimagined building will be built as-of-right, using unused development rights. The building will be demolished down to the existing ninth floor in order to create 17 new glass and steel, highly efficient, column-free floors above. Between the Garden Floors and terraces throughout the building, There will also be 1.3 acres of outdoor space.