650 Madison attracting bids up to $1.4B

Bidders include HFZ, Vornado, others

New York /
May.May 29, 2013 03:00 PM

Real estate firms interested in acquiring the 600,000-square-foot office property at 650 Madison Avenue are offering up to $1.4 billion, which may set a price-per-square-foot record for large office towers, Bloomberg News reported.

The building, majority-owned by Carlyle Group, hit the market in March, and was predicted to see over $1 billion from its sale, as previously reported.

Bidders include HFZ Capital Group, Vornado Realty Trust and a joint venture between General Growth Properties and Brookfield Office Properties. Some plan to convert the building into residences amid a time of high demand for luxury condominiums.

The deal would be the largest since Google’s $1.8 billion acquisition of its Chelsea building in 2010, eclipsing recent sky-high sales, such as the Chetrit Group’s $1.1 billion acquisition of the Sony Building at 550 Madison Avenue.

A sale price of $2,300 per square foot reflects the quality of the building’s 70,000 square feet of retail and the demand for real estate in prime locations, Real Capital Analytics managing director Dan Fasulo told Bloomberg.

Power duo Doug Harmon and Adam Spies of Eastdil Secured are marketing the property, located between East 59th and East 60th streets in The Plaza District.

Final offers are due today. [Bloomberg News]Zachary Kussin


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