SL Green Acquires 2 Herald Square, Sells 635 Madison
SL Green bought the leasehold of the office building at 2 Herald Square which, as the property lender, it was foreclosing on, the firm announced Thursday.
The 369K SF office and retail building at the corner of Sixth Avenue and 34th Street had been the center of a legal dispute between the previous owners, the Sitt brothers of Sitt Asset Management. SL Green’s offer is for around $270M, The Real Deal reports.
The building makes in excess of $100M per year, according to SL Green, and has tenants like WeWork — which leases a large space there but reportedly manages it for Amazon — and Victoria's Secret.
Meanwhile, SL Green, which controls more office space in New York City than any other landlord, also announced it has reached an agreement to sell the fee interest at 635 Madison Ave. for $151M, in a deal that will close in the third quarter.
SL Green paid $145M for the property in 2014.
This doesn't include the leasehold on the property, which is held by Ashkenazy Acquisition Corp. The firm ground leased the building in 2011, which will expire in 2030, according to Commercial Observer.
SL Green did not make the buyer public, but The Real Deal reports that iStar was at the other side of the table. Cushman & Wakefield’s Adam Spies and Doug Harmon represented SL Green.
