Updated, 9:12 a.m., Aug. 20: Investors affiliated with Ruben Companies, a New York City-based real estate investment and development firm, have paid $210 million for an office building at 600 Madison Avenue, city records show. Ruben has held the long-term leasehold on the building since the 1970s, a source familiar with the transaction told The Real Deal.
The 26-story, 327,960-square-foot tower is located at the southwest corner of East 58th Street in The Plaza District. The seller was the Wallace estate, whose trustees are the sons of late real estate investor Dolorita Fitzgerald Wallace. In an unusual twist known as seller financing, the seller now holds the $152.6 million mortgage for the land. The deal closed Aug. 7.
Ruben CEO Richard Ruben told The Real Deal that the seller financing was “part of the negotiation,” and that the deal included the ground fee and claims for back rent. It was unclear how much Ruben had originally paid for the leasehold. He declined to provide details about the consortium of investors that bought the land.
The deal was brokered by Massey Knakal Realty Services’ Paul Massey, Ruben added. Massey could not be immediately reached for comment.
The building is anchored by consulting firm Alvarez & Marsal, which has about 126,069 square feet in the property on floors five through 10, and replaced jeweler Tiffany & Co., Ruben said. Zeil Feldman’s HFZ Capital Group is also headquartered in the building, which also houses high-end retail stores including Mont Blanc and Ugg Australia.
Ruben currently holds a portfolio of more than 5 million square feet across New York, Washington, D.C., and Boston, according to its website.