A joint venture comprised of Oxford Properties, Vornado Realty Trust, Crown Acquisitions and Highgate Holdings along with institutional investors advised by J.P. Morgan Asset Management, has acquired 650 Madison Avenue in New York City for $1.295 billion, or about $2,200 per square foot.
The 27-story, 600,496-square-foot office tower was built in 1956 on the western block of Madison Avenue between 59th and 60th Streets in Manhattan's Plaza District submarket. The property features ground-floor retail space
primarily leased to Crate & Barrel for its 61,400-square-foot flagship store and Tod's, a shoe and leather goods specialty store. The office space
is anchored by Polo Ralph Lauren, which occupies 274,000 square feet for its world headquarters. The asset is currently 92 percent leased, including the medical office component.
The acquisition was financed in part with a new $800 million loan with a seven-year, interest-only term at 4.39%.
Vornado and Oxford will handle leasing and management of the office space, while Vornado and Crown will lease and manage the retail portion of the building. Vornado, the fully-integrated equity real estate investment trust, holds a co-controlling, 20.1% interest in the joint venture group.
Adam Spies, Douglas Harmon, and Adam Doneger with Eastdil Secured LLC represented the sellers, Carlyle Investment Management LLC and Century Plaza, which are affiliated with a fund that has reached its exiting phase.
Please see CoStar COMPS #2850861 for additional information on this transaction.