Madison Capital scored a $51.4 million loan from Mesa West Capital for its purchase of the ground lease at 71 Fifth Avenue, property records filed with the city Friday show.
The Midtown-based real estate investment firm paid nearly $85 million up front for the ground lease for the 11-story Flatiron District office-and-retail building, with annual rent payments starting at $3.5 million. The deal closed Feb. 16. Sources close to the buyer said the $125 million figure that appeared in property records was incorrect.
Annual rent payments will start at $3.5 million with rent resets scheduled for every 25 years of the 99-year term, sources said.
Madison entered contract in October to acquire the fee position, The Real Deal reported at the time.
Family-led firm Samco Properties and the family of WeWork’s global real estate chief Mark Lapidus own the 153,000-square-foot building, which is fully leased. Ovation Corporate Travel is the largest tenant, at 26,000 square feet. That lease expires in 2019.