NEW YORK | 625 Madison Ave | ~800 FT | 34 FLOORS

[NYguy]

...many view the property as a prime development site where the 1960s-era office building could be demolished and replaced with high-end residential condos.

If someone saw that value and bid up the price, they would either have to find a way to boot SLG from its lease or work with the REIT to redevelop the site.

Either way, it's a prime development site that could see a nice tower rise.

[NYguy]

https://therealdeal.com/new-york/2023/08/16/sl-green-takes-over-ben-ashkenazys-625-madison-avenue/

SL Green finally boots Ashkenazy at 625 Madison Ave
Marc Holliday and his partners now control fate of prime Plaza District site


By Rich Bockmann
August 16, 2023

SL Green took over Ben Ashkenazy’s interest at 625 Madison Avenue today — closing a chapter on a years-long dispute over the property and paving the way for what could be big changes at the prime Plaza District site.

The Marc Holliday-led company and its group of lending partners acquired the stake at a UCC auction earlier this morning, according to auctioneer Matthew Mannion of Mannion Auctions. The lenders, who held a $195 million mezzanine loan that Ashkenazy used to finance the property, moved to foreclose in June.

….. The question now: What will become of the 17-story, 1950s-era office building between East 58th and 59th streets, a block away from Central Park?

Ashkenazy purchased the ground underneath the building in 2013 for $400 million — a price that indicated he was eyeing a large increase when the rent reset in 2020. SL Green, which controlled the building under a long-term lease, was paying just $4.5 million at the time, and Ashkenazy’s team floated the idea it could jump to as high as $80 million.

That number was partially based on the view that the best use for the property would be to tear down the office tower and build high-end condos with Central Park views a la the buildings rising around Billionaires Row.

[NYguy]

https://www.crainsnewyork.com/real-estat...ary-following-sl-green-building-takeover

Lavo New York will close in January following SL Green building takeover
The celebrity hotspot has negotiated an early exit at from SL Green's 625 Madison Ave., which could be developed as condos.


C. J. HUGHES
October 27, 2023

[NYguy]

https://therealdeal.com/new-york/2023/12/04/sl-green-closes-625-madison-ave-saga-with-630m-deal/

SL Green closes 625 Madison Ave saga with $630M deal
Landlord has pulled off two of the year’s biggest deals in NYC


DEC 4, 2023
By Rich Bockmann

SL Green has struck a deal to sell the Plaza District office building at 625 Madison Avenue for more than $600 million, the final move in a high-stakes set of maneuvers over the property.

The Marc Holliday-led REIT is in contract to sell the 17-story office building for $633 million to an unidentified buyer, The Real Deal has learned.

The purchaser is an “institutional buyer,” said a source familiar with the deal.

The deal is set to be one of the largest office transactions in a year starved for big-ticket sales. It also closes out an epic chapter in the story of 625 Madison, in which SL Green outmaneuvered investor Ben Ashkenazy for the prize.

[ChiND]

I wonder if this means that the site won’t be redeveloped as condos but will remain as offices.

[Mulan]

What does the FAR specify for this location? Are there any possibilities for free air rights? to possibly build it a little higher.

[NYguy]

Originally Posted by ChiND

I wonder if this means that the site won’t be redeveloped as condos but will remain as offices.

I think for that amount it's an investment for something more. We'll just have to see who the buyer is.

[NYguy]

Seems Related is the buyer…(updated article)

https://therealdeal.com/new-york/2023/12/04/sl-green-closes-625-madison-ave-saga-with-630m-deal/

SL Green closes 625 Madison Ave saga with $630M sale to Related

By Rich Bockmann

The Marc Holliday-led REIT is in contract to sell the 17-story office building for $633 million, The Real Deal has learned. A source later identified the buyer as the Related Companies.

Crain’s first named Related as the buyer late Monday afternoon. Related did not immediately comment.

The deal is set to be one of the largest office transactions in a year starved for big-ticket sales. It also closes out an epic chapter in the story of 625 Madison, in which SL Green outmaneuvered investor Ben Ashkenazy for the prize.

[Crawford]

This is huge news. Related is the biggest urban developer in the U.S. They do mixed-use urban redevelopment and luxury housing. Hudson Yards is their flagship development.

My guess is that there will be a mixed-use supertall built here, though primarily housing. Given the development rights and location, it will likely be one of the tallest buildings in NYC. You couldn't find a better location for high-end housing and retail.

[The New York Lion]

Originally Posted by Crawford

This is huge news. Related is the biggest urban developer in the U.S. They do mixed-use urban redevelopment and luxury housing. Hudson Yards is their flagship development.

My guess is that there will be a mixed-use supertall built here, though primarily housing. Given the development rights and location, it will likely be one of the tallest buildings in NYC. You couldn't find a better location for high-end housing and retail.

This site has 583,000 square feet, and the lot is about medium sized.

I think a tower in the 1,000'-1,200' range clad in Stern limestone would be a blockbuster.

[chris08876]

The key is Central Park views and how we get there, some nice height. This and Park Lane need to happen already.

[ChiND]

According to today’s Therealdeal.com, Related plans a hotel/condo here. I suspect that it’s going to be amazing!

https://therealdeal.com/new-york/2024/02/23/related-plans-condo-hotel-tower-at-625-madison-avenue/

“Ross' Related Companies is planning to build a multi-billion dollar tower at 625 Madison Avenue that will include retail, a hotel and condos, according to people familiar with the project. Sources said the company is already in talks with several luxury hotel and retail brands….

Related plans to demolish the current building and redevelop a new one from the ground up after it closes on the purchase.…”

[Mulan]

I guess the list of potential supertalls in New York is getting longer.

[NYguy]

^ This escalated quickly. More from the article...


https://therealdeal.com/new-york/2024/02/23/related-plans-condo-hotel-tower-at-625-madison-avenue/

Related plans condo, hotel tower at 625 Madison Ave
Developer bought SL Green office tower for $630M


FEB 23, 2024
By Rich Bockmann

Stephen Ross intends to build the Madison Avenue condo tower that Ben Ashkenazy dreamed of.

Ross’ Related Companies is planning to build a multi-billion dollar tower at 625 Madison Avenue that will include retail, a hotel and condos, according to people familiar with the project. Sources said the company is already in talks with several luxury hotel and retail brands.

That area of Midtown has seen a recent influx of high-end investments, including Vlad Doronin’s Aman hotel and condo at the Crown Building just a short walk over on Fifth Avenue.

Deals by big names in luxury goods have spurred confidence in a local retail resurgence. Prada spent more than $830 million in December for a pair of retail properties on Fifth Avenue and the parent company of Gucci bought the retail portion of a building on the shopping strip for $963 million.

A spokesperson for Related declined to comment.

Related’s redevelopment of the site will be the latest chapter for the storied property.

Ashkenazy paid $400 million in 2013 to buy the ground at the site, where the 17-story, 563,000-square-foot building was controlled by SL Green under a long-term lease. (The deal came years after Related owned a stake in the building through the 1990s and housed its offices there.)

With the Billionaires’ Row condo market heating up and the ground lease due for a rent reset in the coming years, Ashkenazy’s business partner Michael Alpert in 2016 said the property could be worth at least $1.4 billion as a residential development site.

SL Green eventually wrestled control of the property away from Ashkenazy via foreclosure and in December struck a deal to sell it to Related for much less than that: $632.5 million. Still, the price tag for the completed projected will likely reach into the multi-billion dollar area.

Related plans to demolish the current building and redevelop a new one from the ground up after it closes on the purchase.

[ChiND]

Originally Posted by NYguy

^ This escalated quickly. More from the article...


https://therealdeal.com/new-york/2024/02/23/related-plans-condo-hotel-tower-at-625-madison-avenue/

Related plans condo, hotel tower at 625 Madison Ave
Developer bought SL Green office tower for $630M


FEB 23, 2024
By Rich Bockmann

How tall do you think this is likely to be?

[NYguy]

Originally Posted by ChiND

How tall do you think this is likely to be?

Pretty tall. Should at least be a supertall tower with that price-tag and programming.

[ChiND]

Originally Posted by NYguy

Pretty tall. Should at least be a supertall tower with that price-tag and programming.

Thanks. I wasn’t sure since it has less than 600k sf.

[Crawford]

This has to be one of the best urban development sites on earth.

I cannot imagine the tower won't be extremely tall, given the A++ location and Central Park views. I expect something roughly the height of 432 Park.

Imagine a 1,400 ft. limestone tower on this site. That would be pretty amazing.

[jackster99]

I wonder where Canali will go when demo starts. Where is James Bond supposed to get his suits when he's in town??

[ChiND]

Given the unparalleled success of 220 CPS and 15 CPW, a classic limestone tower seems to be the recipe for success.