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SL Green to pay $2.6B for Sapir, CIM’s 11 Madison
REIT's purchase of Art Deco office tower is one of the biggest in city's history
SL Green Realty is set to acquire the Sapir Organization and CIM Group’s 11 Madison Avenue office tower for $2.6 billion in one of the largest real estate deals in the city’s history.
The real estate investment trust has agreed to purchase the 2.3 million-square-foot Art Deco skyscraper, located between East 24th and 25th streets and overlooking Madison Square Park, in what would be the biggest single-building deal in the city’s history.
The $2.6 billion acquisition would also be the second-highest price ever paid for an office tower after Boston Properties’ $2.8 billion purchase of the GM Building, at 767 Fifth Avenue in Midtown, in 2008, according to the New York Post. The GM Building deal was part of a $3.95 billion package that included three other towers.
SL Green, the city’s largest landlord with 43.6 million square feet of space across 117 buildings, was set to enter a contract to acquire 11 Madison Avenue either Sunday night or Monday. The deal would surpass Canadian property investor Ivanhoe Cambridge’s $2.2 billion acquisition of 3 Bryant Park at 1095 Sixth Avenue earlier this year.
The Sapir Organization bought 11 Madison Avenue from MetLife for $675 million in 2003. Sapir and CIM Group placed the tower on the market last month, and the building has recently lured technology and media tenants including Sony and Yelp.
Anchor tenant Credit Suisse renewed its 1.2 million square feet at 11 Madison Avenue last year. [NYP] — Rey Mashayekhi