Plaza District Tower on Madison Ave Trades for $633M
An Related Companies is in contract to purchase 625 Madison Avenue. The 17-story, 563,000-square-foot building spanning the entire Madison Avenue blockfront between East 58th and 59th Streets fetched a gross sale price of $623.5 million, or about $1,123 per square foot according to a press release by seller SL Green Realty. The REIT and its partners will originate a $234.5 million preferred equity investment in the property that is just 63% occupied but boasts luxury retailers Eton Shirts and Givenchy housed in the building’s base as well as the restaurant and nightclub LAVO which is slated to close in January 2024. SL Green had acquired the former Nabisco headquarters building in 2004 for $102 million; and in 2013 Ashkenazy acquired the land beneath (fee) the tower for $400 million. SL Green acquired a piece of a $195 million mezzanine loan Ashkenazy borrowed against the property in an effort to head off an anticipated ground rent hike due to the steep price paid for the fee. Subsequently in 2022 the ground rent was raised from $5 million to $20 million per year, however the holding of a foreclosure auction after Ashkenazy fell behind on 625 Madison’s mezzanine loan payments opened the door to SL Green gaining control of the entire property.
Source : https://www.crainsnewyork.com/real-estate/related-cos-identified-buyer-sl-greens-625-madison-ave