Africa Israel sells Clock Tower for $165M

October 14, 2011 03:02PM

Africa Israel USA is selling the Clock Tower building at 5 Madison
Avenue to an undisclosed buyer for $165 million, the company announced
today.

The transaction is expected to close Dec.15, or upon extension of the
agreement and an additional $1 million, around Jan.16, 2012.

“We are delighted to have reached an agreement with a very
credit-worthy buyer to secure the future of this remarkable building
and support the burgeoning vitality of the Madison Square Park
neighborhood,” Tamir Kazaz, CEO of Africa Israel, said in a statement, declining to provide information besides what was in the release.

According to Laurie Golub, general counsel and managing director of
business affairs of Africa Israel, the buyer has made a $5 million
deposit — $2 million of which is non-refundable. “We are delighted to
have achieved such a strong price for this asset. It speaks to the
unique nature of the building and the exciting location,” she said.
Africa Israel declined to comment further on the deal.

Africa Israel had acquired the 41-story, 267,000-square-foot landmark
Clock Tower building in 2007 for $200 million from SL Green. Vacant since 2005, the Clock Tower, between 23rd and 24th streets, was originally constructed and
occupied by Metropolitan Life Insurance.

No broker was involved in the transaction. Africa Israel was
represented by attorneys Doug Heitner and Ashley Lostritto of Kasowitz, Benson,
Torres & Friedman.

Previously, it had been reported that a plan for Tommy Hilfiger to
purchase the tower for $170 million had fallen apart
Miranda Neubauer