Tokyo-based Mori Building Co., Ltd. has picked up a minority stake in SL Green's Midtown East office development at 346 Madison Avenue. The deal gives Mori a 49 percent stake at a $175 million valuation.
The deal will allow Mori to influence the project, which brings its expertise in developing major urban projects from Japan and Asia, including Shanghai World Financial Center, Azabudai Hills, Roppongi Hills and Jakarta MORI Tower.
The 346 Madison project calls for 46 stories with roughly 850,000 square feet of rentable space. It will be an electric building, with column-free floorplates and ceiling heights that range from 15 to 22 inches. The site will also include amenities such as nine terrace floors, loggia space, a tenant lounge, an auditorium with 215 seats, a luxury wellness center and a restaurant on the ground floor.
"346 Madison Avenue will set a new benchmark for innovative office development in East Midtown and Mori Building is the ideal partner to join us in the realization of that vision," Marc Holliday, CEO and chairman of SL Green Realty Corp, said in a statement.
"Tenant demand for the highest-quality, best-located, and most thoughtfully designed buildings far exceeds available supply. This is the perfect moment for SL Green and Mori Building to conceive and build the next great New York City office building."
KPF will serve as the designer of the project. SL Green said in September that it purchased 346 Madison Avenue and the adjacent site at 11 East 44th Street in a combined deal for $160 million.
Additionally, this is not the first time that Mori Building has tapped into the Manhattan market or worked with SL Green. In 2024, the Japanese firm bought an 11 percent stake in SL Green's 1,401-foot-tall property, One Vanderbilt. That valued the office skyscraper at $4.7 billion.
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