SL Green Realty Corp., Manhattan’s largest office landlord, has entered into a contract to sell the fee ownership interest in 625 Madison Avenue for $632.5 million, valuing at $1,123 per square foot, to a global real estate investor. As part of this transaction, SL Green and its partners will make a $234.5 million preferred equity investment in the property.
Situated between 58th and 59th Street in the Plaza District, 625 Madison Avenue spans 563,000 square feet across 17 stories, featuring ground-floor retail. SL Green had initially acquired its stake in the property through a prior mezzanine investment. Proceeds from the sale will be directed towards the repayment of corporate debt.
“This deal, and our recent capitalization of 245 Park, reaffirm that well-located office real estate in New York is still among the most sought-after asset classes in the world,” said Brett Herschenfeld, executive vice president of retail and opportunistic investments at SL Green.