The Real Deal New York

Land under SL Green, Sutton’s 760 Madison up for sale

Sale would not impact SL Green, Sutton and Stonehenge Partners stake in properties
By Adam Pincus | June 20, 2014 06:31PM

The longtime owners of the land under three buildings controlled by SL Green Realty, Jeff Sutton and Stonehenge Partners at Madison Avenue and 65th Street are offering it for sale for an undisclosed price.

The Land Under 760 Madison Avenue, as well as the adjacent properties at 19 And 21 East 65th Street, is leased long-term to a company controlled by SL Green, Sutton and Stonehenge, but is owned by a company called Weatherley 65th Street LLC.

An investment sales team from Massey Knakal Realty Services including Paul Massey, Guthrie Garvin, Michael Gembecki and Tyler Hughes, is marketing the land, known as the “fee.” Massey said his client declined to comment. The long-term lease held by SL Green, Sutton and Stonehenge is not impacted by this sale, and they are not involved in the sale.

In January 2012, SL Green led by CEO Marc Holliday, Sutton and residential landlord Stonehenge bought the ground lease for $14 million from David Frankel as part of a large portfolio acquired for $416 million. The ground lease, which has more than 70 years remaining, has a reset scheduled for April 2015, court records show. At that time the ground lease payments will be reassessed based on current market conditions, which is typical of such leases.

Luxury retailer Armani is the retail tenant in the 16,468-square-foot, four-story 760 Madison, erected in 1996, data from PropertyShark show.

The net rent for the Armani retail space was about $1.7 million in 2012 — the most recent year available — information from the real estate data company Genesis Computer Consultants reveals.