Related Mulls 840K SF of Office at 625 Madison After Saudi Infusion
Other possibilities include hotel rooms, retail and luxury residential
By Larry Getlen July 8, 2025 5:57 pm
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Related Companies’ planned skyscraper at 625 Madison Avenue just landed significant additional investment, with Saudi Arabia’s Public Investment Fund taking a two-thirds stake in the project, according to the Wall Street Journal.
The developer previously announced plans for a 1,200-foot tower at the site. While its ultimate use has yet to be finalized, Related is considering developing the building into 840,000 square feet of trophy office, according to a source with knowledge of Related’s plans. Other possibilities include luxury residences as well as a hotel and retail.
Related has a long history with the site, having first bought the 535,000-square-foot office building there in 1986, and occupying it as the company’s headquarters until selling the building to SL Green in 2004 for $231.5 million.
Related bought the building back from SL Green in May 2024 for $632.5 million — $1,123 a square foot — and began demolishing the existing building later that year.
The WSJ noted that the cost of this new project is expected to eclipse $1 billion, and that while the complete amount of the Saudis’ investment is unclear, they have already put around $200 million into the project. The Saudis have invested in Related before, having made a debt investment in 2020 “convertible into a 15 percent equity stake.”
Asked to comment, a spokesperson for Related would not confirm the 625 Madison investment, but told Commercial Observer in an email, “625 Madison is a truly exceptional site with many possibilities, from mixed-use luxury residential, hotel and retail, to Class AA office headquarters. It’s the heart of the luxury corridor and will have iconic Central Park views. We’re very excited about it.”
Larry Getlen can be reached at lgetlen@commercialobserver.com.
