The owners of 63 Madison Avenue are looking to bring in a new investor to help fill a large chunk of empty space in the office building.
The joint venture between George Comfort & Sons, Jamestown and Loeb Partners Realty is looking to sell a stake in the 1960s-era building in a deal that would value it at roughly $400 million, The Real Deal has learned.
The owners inked one of 2024’s largest office leases when they signed American Eagle Outfitters in the spring to about 337,000 square feet at the building. Still, the 860,000-square-foot building has a large block of empty space and the new capital will help go toward the costs of signing tenants.
The 15-story building is 76 percent leased, according to an offering memo from Newmark.
A spokesperson for George Comfort & Sons declined to comment, while representatives for Jamestown and Loeb Partners Realty did not immediately respond to requests. A Newmark team led by Adam Spies and Adam Doneger is overseeing the sales process.
The mid-rise office building was developed in 1962 as an annex for New York Life Insurance, which has its headquarters across the street.
George Comfort and Loeb Partners sold a 49 percent stake in 2016 to Jamestown at 63 Madison and another building a few blocks uptown at 200 Madison Avenue.
That sale valued both buildings at $1.15 billion, or roughly $710 per square foot. The $400 million valuation the owners are seeking now for 63 Madison works out to roughly $465 per square foot — showing how far valuations have dropped from their peaks.
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