SL Green has locked in its first tenant at One Madison Avenue, marking the next stage of the company’s 1.4 million-square-foot office development.
The office landlord announced Wednesday that Chelsea Piers Fitness signed a 20-year lease to occupy portions of the building’s first two levels, in addition to two basement floors. The lease is for nearly 56,000 square feet. Asking rents were not revealed.
The Chelsea Piers Fitness location will be the company’s fourth in the city and its second in Manhattan. Erin Grace and Matt Ogle of JLL represented Chelsea Piers in the lease negotiations.
Plans for the “state-of-the-art facility” include “every fitness product and experience available in the market today, as well as new concepts and technology,” SL Green Managing Director Brett Herschenfeld said in a statement.
One Madison Avenue occupies a full-block site, bound by Park Avenues and Madison Avenue and East 23rd and East 24th Streets. SL Green acquired the 1.4-million-square-foot property for $918 million in 2005 and later announced it would redevelop the site as an office building, which was expected to cost $2.3 billion.
SL Green last November landed a $1.25 billion construction loan for the project, ringing in one of the largest office financing packages of the year. The loan was provided by a number of banks, including Wells Fargo, TD Bank, Goldman Sachs, Bank of America and Axos Bank.
The company in May 2020 announced a joint partnership after selling 49.5 percent of its interest in the development to Hines and the National Pension Service of Korea; the two firms committed at least $492.2 million in equity to the project.
One Madison is situated amid the leading neighborhood in Manhattan’s office market pandemic recovery. Interest for office space varied widely among the borough’s top areas, but prospective tenants in the third quarter were hunting for 6.5 million square feet of office space in Midtown South, according to an analysis by KPG Fund and Newmark previously reported by The Real Deal.