SL Green to pay $2.6B for Sapir, CIM’s 11 Madison

REIT's purchase of Art Deco office tower is one of the biggest in city's history

New York /
May.May 18, 2015 01:05 PM

SL Green Realty is set to acquire the Sapir Organization and CIM Group’s 11 Madison Avenue office tower for $2.6 billion in one of the largest real estate deals in the city’s history.

The real estate investment trust has agreed to purchase the 2.3 million-square-foot Art Deco skyscraper, located between East 24th and 25th streets and overlooking Madison Square Park, in what would be the biggest single-building deal in the city’s history.

The $2.6 billion acquisition would also be the second-highest price ever paid for an office tower after Boston Properties’ $2.8 billion purchase of the GM Building, at 767 Fifth Avenue in Midtown, in 2008, according to the New York Post. The GM Building deal was part of a $3.95 billion package that included three other towers.

SL Green, the city’s largest landlord with 43.6 million square feet of space across 117 buildings, was set to enter a contract to acquire 11 Madison Avenue either Sunday night or Monday. The deal would surpass Canadian property investor Ivanhoe Cambridge’s $2.2 billion acquisition of 3 Bryant Park at 1095 Sixth Avenue earlier this year.

The Sapir Organization bought 11 Madison Avenue from MetLife for $675 million in 2003. Sapir and CIM Group placed the tower on the market last month, and the building has recently lured technology and media tenants including Sony and Yelp.

Anchor tenant Credit Suisse renewed its 1.2 million square feet at 11 Madison Avenue last year. [NYP]Rey Mashayekhi


Related Articles

arrow_forward_ios
From left: Rotem Rosen, Zina Sapir, Tamir Sapir, Bella Sapir, Elena Sapir, and Alex Sapir (Credit: Getty Images)
Alex Sapir accused of mismanaging family fortune amid feud with Rotem Rosen
Alex Sapir accused of mismanaging family fortune amid feud with Rotem Rosen
The Daily News Building at 220 East 42nd Street and SL Green CEO Marc Holliday (Credit: Getty Images)
SL Green puts Daily News building up for sale
SL Green puts Daily News building up for sale
SL Green snags private-equity firm at One Vanderbilt
SL Green snags private-equity firm at One Vanderbilt
SL Green snags private-equity firm at One Vanderbilt
Joe Chetrit and a rendering of the Two Bridges project (SHoP Architects)
Joe Chetrit buying Two Bridges site
Joe Chetrit buying Two Bridges site
HNA Group's Guoqing Chen, 245 Park Avenue in Manhattan and 181 West Madison Street in Chicago (Committee of 100, Wikimedia)
HNA entity puts Park Avenue office tower, Chicago Loop high-rise in bankruptcy
HNA entity puts Park Avenue office tower, Chicago Loop high-rise in bankruptcy
590 Fifth Avenue and SL Green CEO Marc Holliday (SL Green)
SL Green sells 590 Fifth Avenue for $103M
SL Green sells 590 Fifth Avenue for $103M
SL Green CEO Marc Holliday, Chelsea Piers Fitness CEO David Tewksbury and One Madison Avenue (Getty, SL Green)
Chelsea Piers is coming to SL Green’s One Madison
Chelsea Piers is coming to SL Green’s One Madison
SL Green buys stake in 1601 Broadway for $121M
SL Green buys stake in 1601 Broadway for $121M
SL Green buys stake in 1601 Broadway for $121M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...