SL Green Realty, together with its partners, has agreed to sell the fee ownership interest in 625 Madison Avenue for $632.5 million, or $1,123 per square foot, to a global real estate investor.
Located between 58th and 59th Street, in close proximity to Central Park, 625 Madison Avenue is currently a 17-story, 563,000-square-foot office building with ground floor retail space.
In connection with the sale, SL Green and its partners will originate a $234.5 million preferred equity investment in the property.
Net proceeds from the sale will be used by the company for the repayment of corporate debt.
“This deal, and our recent capitalization of 245 Park, reaffirm that well-located office real estate in New York is still among the most sought-after asset classes in the world,” said Brett Herschenfeld, Executive Vice President, Retail and Opportunistic Investments at SL Green.
“Whether properties are upgraded to state-of-the-art office or are converted into a multitude of other uses that are in high demand, the appetite for Class-A office properties in prime Manhattan locations remains strong and growing.”
SL Green acquired its interest in the property through a previous mezzanine investment.
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