Summit Properties buys 444 Madison leasehold in – Business News
Summit Properties, which owns 2.66 million sq. toes of flats in 90 New York City buildings, took an opportunistic — and shocking — first plunge into the scorching Manhattan workplace market, Realty Check has realized.
Summit purchased the leasehold of 444 Madison Ave., an Art Deco-style, 42-story tower between East forty ninth and fiftieth streets, sources stated. The price was $41.7 million, in line with public information.
The information got here as one thing of a shock. It was broadly reported final month that a completely different New York developer and landlord, Savanna, was the customer of 444 Madison or that it was companions with Summit in the acquisition.
Summit Properties purchased the leasehold at 444 Madison Ave. for was $41.7 million. JLL
In reality, stated an insider, the 2 extremely revered corporations “were originally going to buy it together but ended up with Summit alone as the owner.” The vendor was Westbrook Partners which defaulted on a $120 million mortgage.
Zohar Levy, Summit’s chairman and predominant shareholder, stated, “We intend to invest and turn the iconic tower into a top-tier building for premier tenants who value location, prestige and quality.”
Summit paid much less for 444 Madison than the $50 million that was inaccurately reported final month. There’s no debt on the building. Sources stated Summit studied the workplace market for a long time and determined the time was proper, now that fears of work-from-home are largely over and tenants are increasing at a fast tempo.
Summit instantly tapped Savanna, with whom it enjoys a cordial relationship, to be the property’s asset supervisor and JLL as its unique office-leasing agent.
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The 500,000 square-foot building has a 135,000 square-foot contiguous block of space out there, a uncommon and precious commodity in the drum-tight Manhattan market.
A tenant may additionally exploit an even rarer option for distinguished rooftop signage, as Burberry, New York magazine and Newsweek every had in the previous.
444 Madison Ave. has about 5,300 sq. toes of retail space out there. JLL
Mitch Konsker, head of the JLL leasing crew with Ben Bass, stated the building’s largest tenant is law firm Schwartz, Sladkus, Reich, Greenberg. Other tenants embody the Doris Duke Foundation, EOS Hospitality and Capital Dynamics.
Office asking rents are anticipated to be in the $80-100 per sq. foot vary. The tower additionally has about 5,300 sq. toes of retail out there.
In addition to Summit’s residential holdings, it additionally owns a $700 million retail mall portfolio throughout the US and stakes in two Manhattan resorts.
Summit’s prize stands in the guts of resurgent Madison Avenue north of Grand Central Terminal. It’s close by the new JPMorgan Chase headquarters tower; to Munich Re’s 330 Madison the place Guggenheim lately expanded; and BXP’s development website at 343 Madison the place excavation is underneath manner for a new tower.
