SL Green to Sell Fee Interest in 635 Madison for $151M

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SL Green Realty Corp. has completed an agreement to sell the fee interest of the 635 Madison Avenue office building in the Plaza District for $151 million, according to a release from the landlord today.

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The deal results in a $6 million profit for SL Green since it acquired the property four years ago. The company, which is the largest office landlord in the city, expects the sale of the 19-story building between East 59th and East 60th Streets to be completed during the third quarter of 2018.

The buyer of the fee interest of the 176,500-square-foot structure was real estate investment trust Safety, Income & Growth, according to the company’s recent public filings. Adam Spies and Doug Harmon of Cushman & Wakefield handled the transaction for SL Green. The brokers did not immediately return a request for comment via a C&W spokesman.

The proceeds from the sale will be used for SL Green’s $1.5 billion stock repurchase program.

Ashkenazy Acquisition owns the property via a leasehold that expires in 2030. The leasehold includes one 21-year option to renew, as CO previously reported.

Retail tenants at 635 Madison Avenue include jewelry and accessories company Baccarat and  cosmetics store Molton Brown.