NEW YORK — SL Green Realty Corp. (NYSE: SLG), New York City’s largest commercial property owner, has entered into a definitive agreement to acquire Eleven Madison Avenue in New York City for $2.29 billion, plus approximately $300 million in costs associated with lease-stipulated improvements to the property. The building is being sold by a joint venture between The Sapir Organization and CIM Group. The transaction is expected to close in the third quarter of 2015.
Built in 1929 as the original headquarters of Metropolitan Life Insurance Co., Eleven Madison Avenue is a 29-story, 2.3 million-square-foot office tower located in New York’s Midtown South submarket.
After a $700 million modernization in the 1990s, it became the North American headquarters of Credit Suisse, which continues to be the largest tenant in the building today. It also will serve as the new headquarters for Sony Corp. of America. Yelp, Young & Rubicam, William Morris Endeavor Entertainment and Fidelity Investments occupy the balance of the building, along with the Eleven Madison Park restaurant, which earned Three Stars from the Michelin Guide.
The property features an art-deco design highlighted by an Alabama limestone exterior. It is also on the National Register of Historic Places.
“Eleven Madison Avenue is one of the best assets in New York City’s vibrant Midtown South submarket, with floor-plate sizes, amenities and a robust infrastructure that are truly unique to the area,” says Isaac Zion, SL Green Corp.’s chief investment officer. “Occupying a full block across from Madison Square Park, the building has direct connectivity to One Madison Avenue, a 1.2 million-square-foot building that is leased to Credit Suisse and also owned by SL Green.”
The law firm of Greenberg Traurig LLP represented SL Green. Darcy Stacom and Bill Shanahan of CBRE represented the seller, along with the law firm of DLA Piper.
“After the past two years of repositioning the asset and value creation through lease up and renovations, we are pleased to consummate this sale with SL Green,” says Alex Sapir, president of The Sapir Organization. “We trust that they will continue to own and operate this trophy asset in the same manner that we have over the past 12 years.”
SL Green Realty Corp.’s stock price closed at $121.87 per share on Monday, May 18, up from $108.37 per share one year ago.
SL Green Realty Corp., an S&P 500 company, is a fully integrated REIT focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties.
The Sapir Organization is a group of privately and publicly held companies owned by Sapir family members. The New York-based real estate organization owns and manages 6 million square feet of Manhattan commercial and residential space.
CIM Group is a full-service urban real estate and infrastructure fund manager with $18.7 billion in assets under management.
— Haisten Willis