SL Green involvement at 510 Madison comes at steep price

SL Green, which recently purchased the construction loan on Harry Macklowe’s 510 Madison Avenue in a move that some experts said was a major step toward taking control of the new, 350,000-square-foot office tower, is set to pay a hefty price for its involvement, sources told the Post. The $185 million in outstanding debt was purchased from Union Labor Life Insurance for $170 million, a price tag that one source noted was “not that substantial a discount.” Now, SL Green will have to fund $30 million in unfinished work on the property, plus foot a $30 to $40 million bill for a reserve for tenant improvement allowances and brokers’ commissions. The building’s only tenants thus far are investment firm Jay Goldman and watch retailer Tourneau, both of which are embroiled in battles to renege on their contracts. [Post]