[NYguy]

Not a proposal yet, but something to keep an eye on...



https://commercialobserver.com/2019/...-year-sources/

330 Madison Avenue Will Sell Within the Next Year: Sources
Could be a “new One Vanderbilt”





BY MACK BURKE
JUNE 11, 2019

Vornado Realty Trust announced yesterday that it will sell its 25 percent minority stake in the massive Midtown office tower, which is valued at around $900 million, and Bloomberg confirmed today that ADIA, which holds a 75 percent interest in the asset, has agreed to buy out the firm through one of its subsidiaries.

Vornado said in its press release yesterday that it expects the sale to close in the third quarter. A spokeswoman for Vornado did not provide a comment on the transaction.

But, ADIA won’t be sitting on its laurels. A source close to the property told CO that the investment giant—the world’s third largest sovereign wealth fund—“will sell the building within the next year.”

“ADIA wanted full control of the building,” Stacom explained. “We anticipate a positive reception, and being able to offer it fee-simple [will] be catnip to the investment community.

“It is one of the few 30 FAR Midtown East rezoning sites,” she added. “It’s nice to know that sometime in the future, if you wanted to create a new One Vanderbilt, you could.”

Built in 1965, the 40-story property between East 42nd and East 43rd Streets sits just a block from Grand Central Terminal and SL Green Realty’s One Vanderbilt.

The 846,000-square-foot 330 Madison underwent a 121 million renovation and repositioning in 2014, according to a rating agency report on the MAD 2017-330M single-asset CMBS deal in which it was securitized. After the renovation, Vornado—in a joint venture with ADIA subsidiary Chadison—was able to execute over 600,000 square feet of new and renewal leases, according to a presale report from DBRS.