SL Green to Acquire 635 Madison Stake, Soho Retail Condos
Gus Delaporte April 23, 2014, 10:10 a.m.
SL Green has agreed to acquire the fee interest at 635 Madison Avenue for $135 million in an off-market transaction, the real estate investment trust announced today. The building is owned by Ashkenazy Acquisition Corporation.
The property includes a ground lease that expires in 2030 and includes one 21-year renewal extension option.
The Emery Roth & Sons-designed building was completed in 1958. The building’s tenant roster includes watchmaker Raymond Weil, Baccarat, Molton Brown and Camper.
Concurrently, SL Green announced deals for two retail condominiums in Soho. The REIT is in contract to acquire the 7,200-square-foot retail condo at 121 Greene Street, which is occupied by Warby Parker and Proenza Schouler. The other property, a 5,218-square-foot retail condo at 115 Spring Street, is leased to Opera Gallery through January 2017.
“The Soho submarket is experiencing a phenomenal surge in consumer demand driven by the appeal of the area’s destination shopping experience by both tourists and New York City residents,” said Brett Herschenfeld, a managing director at SL Green, in a prepared statement. “We believe the outlook for long-term economic growth in this neighborhood is very strong”
Both retail condominiums are leased below market rents, according to a press release.