Joseph Chetrit is taking the next step to close the $1.1 billion purchase of the Sony tower at 550 Madison Avenue. The property owner is now in talks with SL Green, the city’s largest commercial landlord, to finance around $800 to $900 million of the acquisition, Crain’s reported. SL Green would then sell the senior portion of the debt to a bank partner. As for the remaining $300 million, SL Green would keep it as mezzanine financing on its own balance sheet, Crain’s said. This story comes on the heels of one taking a look inside the deal.
Chetrit is aiming to convert a large portion of the 36-story property into condominiums, commanding per-square-foot prices of $4,000 or more. In addition, he either wants to sell or lease another part of the building to a high-end hotel operator.
Sony will remain at the premises for roughly three more years and secure $770 million from the sale. [Crain’s] –Zachary Kussin