The 2.3 million-square-foot office tower at 11 Madison Park is set to hit the market seeking a sales price of $1.5 billion, the Wall Street Journal reported. CIM Group and the Sapir Organization have tapped a CBRE Group team led by the firm’s vice chairwoman, Darcy Stacom.
Sapir bought the building in 2003 for $675 million; in 2010 CIM Group purchased a 49 percent stake in the property for $469 million. The building is about 80 percent occupied by Credit Suisse, which pays a below-market rental rate of $19 per square-foot. That lease expires in 2017.
“It ultimately will produce a very strong cash-on-cash return,” Stacom said.
The building is the second in the last two weeks to hit the market seeking 10 figures. Eastdil Secured was hired to market World Wide Plaza, the 1.8 million-square-foot tower at 825 Eighth Avenue, and is also seeking about $1.5 billion.
The Journal said no building has been sold for that price since Google’s $1.9 billion purchase of 111 Eighth Avenue in late 2010. [WSJ, 2nd item] – Adam Fusfeld