SL Green to get $50 million 510 Madison consolation prize

August 24, 2010 10:30AM

SL Green’s Marc Holliday and 510 Madison Avenue

While SL Green failed to scoop up 510 Madison Avenue last week, after Boston Properties announced it had reached a deal to buy the troubled Macklowe building for $317 million, it does stand to gain a tidy windfall from the property, according to Crain’s. Once Boston Properties closes on the deal, SL Green will gain a $50 million profit on the two discounted loans it purchased on the building last year — marking a 50 percent return on the investment. Anthony Paolone, an analyst for JPMorgan Chase who has researched the deal, said that SL Green has reason to celebrate, even though it didn’t win the ultimate prize. “[SL Green] almost certainly wanted to own 510 Madison given its location and quality, but we think the sale of the asset and the ultimate payoff of the debts [owed to SL Green] is nonetheless a lucrative outcome for the company,” Paolone said. [Crain’s]