NEW YORK CITY — Jones Lang LaSalle’s Capital Markets team has closed the $265.1 million sale of 350 Madison Avenue, a 24-story Class A office tower in midtown Manhattan. The 394,000-square-foot trophy tower is located at the corner of Madison Avenue and West 45th Street.
Richard Baxter, vice chairman of Jones Lang LaSalle’s Capital Markets team, along with Jon Caplan, Ron Cohen and Scott Latham, represented the seller, Kensico Properties, in the transaction.
RFR Holdings, a private real estate investment and development firm based in Manhattan, purchased 350 Madison Avenue, which features 70,000 square feet of retail space. Paul Stuart, an upscale clothing retailer, has occupied the retail portion of the property since 1938.
“350 Madison Avenue is an unparalleled investment opportunity, just steps from Grand Central Terminal. The property captured the attention of domestic and international investors, with the ultimate frontrunner being RFR Holdings,” says Baxter. “350 Madison Avenue is nearly 30 percent vacant, affording the buyer to take full advantage of the robust leasing market in Midtown.”
According to Baxter, the vacancy rate in midtown Manhattan’s office market is currently 9.3 percent. The submarket has tightened from its 11.6 percent vacancy rate in the third quarter of 2012, according to Jones Lang LaSalle.
350 Madison Avenue was built in 1922 and underwent a complete renovation in 2011. The building features a new façade, sky-lit lobby and an atrium. The property currently has floor plates ranging from 2,400 square feet to 23,000 square feet available for lease.
— John Nelson