Carlton chairman Howard Michaels confirmed yesterday (Tuesday) he has been tapped by SL Green to market the Lipstick Building fee position.
“The Lipstick Building is one of the most recognizable assets in the world,” said Michaels. “It would be a jewel in anyone’s portfolio.”
In Calrton’s e-pitch to would-be investors, the trophy office property is described as “one of the safest real estate assets you can possibly invest in … and virtually guarantees you a steady and secure cash flow in the form of ground rent for many years to come.ˮ
With many investors looking for conservative, safe investments, Michaels said investing in Manhattan fee positions is the most senior — and safest — portion of the ownership stack.
SL Green paid $317 million for the majority of the land beneath the building in 2007. Argentinian real estate company IRSA — Inversiones y Representaciones Sociedad Anóma — currently operates the property at 885 Third Avenue.
IRSA bought the debt on the property after Metropolitan went bankrupt on the deal after paying $650 million for the famed tower at the height of the market.
The Argentinians have successfully repositioned the Philip Johnson-designed office tower, now fully leased to tenants that include law firm, Latham & Watkins.