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.