SL Green has sold a 49.5 percent interest in One Madison Avenue to the National Pension Service of Korea and Hines Interest LP .
NPS and Hines have committed aggregate equity to the project totaling no less than $492.2 million.
SL Green Realty Corp. and Hines will co-develop the $2.3 billion project, which will span 1.4 million rentable square feet upon completion.
“NPS and Hines have been tremendous partners at our iconic development at One Vanderbilt Avenue. 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,” said Marc Holliday, Chairman and Chief Executive Officer of SL Green.
“This joint venture partnership serves as an affirmation of New York City’s market resiliency and SL Green’s ability to execute its business goals in a demanding climate.”
“One Madison Avenue will be a market-leading building at the doorstep of Madison Square Park, and the National Pension Service of Korea is excited to join SL Green in another marquee project that will strengthen our already proven partnership,” said Scott Kim, Head of Real Estate Investment Division, National Pension Service of Korea.
“Hines and SL Green have worked together for over a decade, and developing One Madison Avenue will be another milestone in our collaborative partnership. Building upon the success of One Vanderbilt, we are excited to move forward with an exemplary tower that will reimagine the Madison Square Park subdistrict,” said Jeffrey C. Hines, President and Chief Executive Officer.
Kohn Pedersen Fox Associates (KPF), 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 column-free floors above.
The podium, which features 90,000 s/f floorplates, will be paired with the efficient, virtually column-free 36,000 s/f t floorplates in the newly constructed tower above.
Interior and exterior work to the existing podium, including revitalizing the lobby, modernizing core elements, enlarging existing windows, all while activating retail space and below-grade spaces, will create a complete, seamless, and unrivaled experience in Manhattan’s most in-demand office district.
The 10th and 11th “Garden Floors” offer over 55,000 s/f of column-free space featuring 22-foot slab-to-slab heights coupled with over 29,000 s/f of panoramic accessible terrace space.
Between the Garden Floors and terraces throughout the building, One Madison Avenue offers approximately 1.3 acres of accessible outdoor space, providing a truly unique opportunity for tenants to create their own exclusive park in the sky.
The National Pension Service of Korea (NPS) is one of the largest pension funds in the world with $628 billion in assets as of January 31, 2020.
Hines is a privately owned global real estate investment, development and management firm founded in 1957 with a presence in 205 cities in 24 countries and $133.3 billion of assets under management.