SL Green Realty Corp. has sold a 25 percent interest in One Madison Avenue to an international investor.
The buyer has committed aggregate equity to the project totaling no less than $259.3 million. SL Green retained a 25.5 percent interest in the property, while its joint venture partners, the National Pension Service of Korea and Hines, retained their 49.5 percent interest in the property.
SL Green Realty Corp. and Hines are co-developing the $2.3 billion project. This transaction follows the successful signing of Chelsea Piers Fitness in October as the flagship retail tenant at the building.
The development of One Madison Avenue, which is currently ahead of schedule and under budget, is transforming the existing full-block structure into a 27-floor, 1.4 million square foot state-of-the-art office tower with cutting-edge infrastructure, best-in-class healthy work environment and a forward-thinking amenity program.
“New York City’s investment market remains resilient and the One Madison Avenue transaction demonstrates the strong appetite by institutional investors for trophy assets located in prime sub-markets,” said Marc Holliday, Chairman and Chief Executive Officer of SL Green. “We and our partners are very excited about the tenant response to the project and look forward to delivering the premier, sustainable office tower in the vibrant Midtown South neighborhood.”
Demolition is complete, structural reinforcement is substantially complete and vertical construction is currently underway with the full project scheduled to be completed in less than 23 months. SL Green negotiated New York City’s largest office construction facility in 2020, securing a $1.25 billion construction loan for One Madison Avenue.
The project is expected to produce more than 3,000 new construction jobs, the vast majority of which will be union labor participation.
One Madison Avenue will combine the elegance of the existing limestone building together with more than 500,000 s/f of new, virtually column free construction. Health and wellness is paramount to the building design with the inclusion of DOAS HVAC, which circulates 100 percent fresh outside air.
New, oversized floor to ceiling windows in the podium and a continuous curtain wall in the tower will flood the floors with natural daylight. Mega-sized roof terraces will provide a one-of-a-kind opportunity to create indoor/outdoor, work/entertainment space. In addition to Chelsea Piers, amenities are currently anticipated to include a 13,000 square foot upscale restaurant, 10,000 s/f artisanal dining market and 7,000 s/f tenant-exclusive lounge with direct elevator access to a 10,000 s/f rooftop deck.
SL Green bought One Madison Avenue from Metropolitan Life Insurance Company for $918 million in 2005. One Madison Avenue consists of two contiguous buildings – the South Building and the North Tower – totaling approximately 1.4 million square feet.
In 2015 the company paid $2.6 billion to acquire the neighboring 11 Madison Avenue from the Sapir Organization and minority partner CIM Group. Earlier this year, liquor giant Beam Suntory signed a 99,556 s/f lease that brought the building’s occupancy to 100 percent.