The Real Deal New York

SL Green is selling fee interest in 635 Madison. But not to iStar

L&L exercised an option to buy, pulling deal away from REIT
By Will Parker and Mark Maurer | July 02, 2018 12:41PM

L&L Holding’s Robert Lapudis and 635 Madison Avenue (Credit: Madison Square Park, Blocksy, and LoopNet)

UPDATED, July 2, 2:26 p.m.: L&L Holding Company is buying the fee interest on the 635 Madison Avenue office building in Midtown for $153 million, sources confirmed on Monday.

IStar, a real estate investment trust, had previously been in contract to acquire the interest, for a reported price of $151 million. But L&L, which owned the interest in 2014 before selling it SL Green Realty, retained a right of first refusal and a purchase option, which it has now exercised.

An iStar affiliate, Safe, Income and Growth, Inc., reported losing the bid to buy 635 Madison in a U.S. Securities and Exchange Commission filing Monday.

Cushman & Wakefield’s Adam Spies, Doug Harmon, Josh King and Kevin Donner is brokering the deal.

The 19-story property, which has a Baccarat store in the ground-floor retail space, is currently leased to Ashkenazy Acquisition Corporation. That lease is good for another 34 years.