Columbia Property Trust, Inc. (CXP) has reached an agreement to purchase 149 Madison Avenue, a 127,000 s/foffice building in Manhattan, from a private family owner.
The price was not disclosed, although The Real Deal reported it close to $88 million.
149 Madison is located in the NoMAD district on the southeast corner of 32nd Street and Madison Avenue.
Built in 1916, the 12-story building is subject to a ground lease that expires in January 2018 with fully coterminous tenant leases. At expiration, Columbia will own a fee simple interest in the land and building.
Columbia plans to perform a comprehensive renovation of the property, including updating its infrastructure, interior and exterior finishes, and common areas throughout.
“149 Madison offers a compelling opportunity to leverage our scale and expertise in New York at an attractive discount to replacement cost and to create value through repositioning and re-leasing the full building,” said Nelson Mills, president and CEO of Columbia Property Trust.
“With over $600 million in proceeds available from our recently completed disposition program, the purchase of 149 Madison is a promising start to our plan to put capital to work in our target markets.”
Adam Popper, senior vice president for Columbia in the Eastern region, continued, “The expiration of both the ground lease and existing tenant leases at 149 Madison offer us a rare opportunity to renovate the entire building and mark to market rates on every floor, providing strong upside potential. We have already begun preparations to reposition this building over the next 18-24 months so that it will compete among the best product in the submarket.”
149 Madison Avenue will be Columbia’s second asset in Midtown South and will provide the Company with a portfolio of five office properties in the New York City area.
Eastdil Secured and Cushman & Wakefield represented the seller.