NEW YORK — HFF (NYSE: HFF) has secured a $110 million first mortgage financing for 180 Madison Avenue, an historic, 23-story, 280,953-square-foot office tower in Manhattan.
180 Madison Avenue is located at the southwest corner of Madison Avenue and East 34th Street in Manhattan’s Midtown South office submarket. The building, formerly known as The Lingerie Building, was historically the premier building for lingerie manufacturers and wholesalers in New York.
Originally built in 1926, the property is in the final stages of a comprehensive renovation that has repositioned the asset as a best-in-class office building. Improvements include a lobby renovation, elevator modernization and window replacements, as well as various electrical upgrades.
Recent rollover at the building, which is currently 72 percent leased, has enabled ownership to demolish and pre-build space as tenants’ leases expire.
The property has become a desirable location for firms in the technology, advertising, media and information (TAMI) sectors that are concentrated in the Midtown South market, according to HFF.
Two of the top five largest tenants located in the building, The Rubicon Project and Unified Social, are indicative of growing TAMI firms relocating to Midtown South.
Both tenants signed leases at the property in the last few years and both have already expanded within the building since their arrival.
HFF placed the loan with J.P. Morgan Chase Bank NA and Landesbank Hessen-Thuringen Girozentrale (Helaba) on behalf of an institutional investor. Michael Tepedino, senior managing director, and Michael Gigliotti, managing director, led the HFF debt placement team representing the borrower.
HFF’s stock price closed at $35.90 per share on Monday, Sept. 21, up from $29.36 per share a year ago.
— Scott Reid