NYC Office Building Brings 2nd Highest Price Ever
11 Madison Ave New York, NY
If there’s one thing I remember from my pre-2008 days, it was seeing a lot of stories like this. Are we in bubble territory yet?
SL Green Realty has agreed to buy CIM Group’s 11 Madison Ave. The 29-story office tower in Manhattan, NY will reportedly trade for $2.3 billion, the second highest price ever paid for a U.S. office building. SL Green will also spend $300 million on immediate capital improvements.
The 2.3 million SF Art Deco property is anchored by Credit Suisse (1.2 million SF through 2034) and Sony Corp (500,000 SF). Review website Yelp, and talent agency William Morris Endeavor are also tenants in the building.For more information on this deal, check out:
http://www.wsj.com/articles/cim-partner-agree-to-sell-11-madison-ave-for-2-6-billion-1432072005
http://therealdeal.com/blog/2015/05/18/sl-green-to-pay-2-6b-for-sapirs-11-madison-avenue/
Frequently Asked Questions about the 11 Madison Avenue Office Deal in NYC
What is the significance of the 11 Madison Avenue transaction?
SL Green Realty’s acquisition of 11 Madison Avenue for $2.3 billion marks the second highest price ever paid for a U.S. office building, underscoring strong investor confidence in prime Manhattan office assets.
Who are the major tenants at 11 Madison Avenue?
The building is anchored by Credit Suisse, which leases 1.2 million SF through 2034, and Sony Corp, with 500,000 SF. Other tenants include Yelp and William Morris Endeavor.
What additional investment will SL Green make in the property?
SL Green plans to spend $300 million on immediate capital improvements following the acquisition, further enhancing the property’s value and appeal.
How large is the 11 Madison Avenue building?
The building spans 2.3 million square feet across 29 stories, making it one of the largest office properties in Manhattan.
Does this sale indicate a potential real estate bubble?
The blog author raises the question: “Are we in bubble territory yet?”—referencing the high pricing reminiscent of pre-2008 real estate trends. While not conclusive, the scale of the deal has prompted comparisons to past peak-market activity.
Where can I find more details about the deal?
You can find more information through these sources:
Wall Street Journal: Link
The Real Deal: Link
Bloomberg: Link
