NEW YORK CITY—SL Green Realty Corp. has completed what is believed to be the record purchase of 11 Madison Ave. The REIT paid $2.285 billion plus approximately $300 million in lease improvement costs for the property.
The 2.3-million-square-foot office property, which formerly served as the headquarters for what is now MetLife, was purchased from a joint venture of the Sapir Organization and the CIM Group. SL Green announced on May 19th its intent to acquire the property. Globest.com reported at the time that the deal was believed to be the largest single-building deal in the city's history.
The 11 Madison office building is now largely occupied by Credit Suisse. It also will serve as the new headquarters for Sony Corp. of America, which sold its headquarters farther up the street, at 550 Madison Ave., in early 2013.
The acquisition was financed with $1.4 billion of 10-year, interest only, fixed rate financing, with an interest rate of 3.838% per annum. No further financial details of the transaction were released.
The CBRE investment sales team of Darcy Stacom and William Shanahan represented the Sapir/CIM JV, which acquired the property from MetLife for $675 million in 2003. The law firm of Greenberg Traurig represented SL Green, while DLA Piper (US) provided legal counsel to the sellers.
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