680 Madison Ave Ground Lease Trades at a Discount

The ground lease beneath the block-through approximately 31,670-square-foot retail space at the base of the 68-unit Carlton House co-operative building spanning the entire Madison Avenue block-front between East 61st and 62nd Streets recently changed hands. The sale marks Florida-based TZ Capital’s first purchase in New York, having acquired the leasehold that commenced in April 1967 and extends through June 2169 for reportedly $180 million. Seller, Thor Equities acquired the leasehold in December 2012 for $262.375 million according to city records, financing the transaction with a $175 million loan from Morgan Stanley; and subsequently in December 2013 a second leasehold mortgage for $21 million originated by Manufacturers and Traders Trust Company was secured. In 2017 the remaining $185 million in unpaid principal was refinanced by JPMorgan Chase and consolidated with a newly originated $30 million loan. At the time of the refinancing, press released by The Real Deal indicated that Thor was paying $3.45 million in annual ground rent. The retail space is currently occupied by luxury retailers including Italian menswear brand Brioni leased 7,000 square feet on the ground and 2nd floor in May 2015 at an asking rent of $2,000 per square foot; Tom Ford, which leased 12,300 square feet on 2 levels in August 2016 at an asking rent of $2,000 per square foot; Italian fashion house Missoni leased 3,500 square feet in January 2019 under a 15-year term and an asking rent of $1,200 per square foot according to press at the time; and they are joined by high-end eyewear brand Morgenthal Frederics and British jewelry retailer Asprey. In June 2023 Oscar de la Renta signed a lease for 7,697 square feet per Costar; and although not verified may be replacing Bioni upon relocation from nearby 772 Madison Avenue.

Source:    https://therealdeal.com/new-york/2024/05/22/joe-sitts-thor-sells-680-madison-retail-to-tz-capital/