The Chetrit Group LLC, a New York-based developer, owner and investment firm, acquired the Sony Tower at 550 Madison Ave. in New York, NY from Sony Corporation of America. The deal closed March 15th for $1.1 billion, or about $1,300 per square foot.
Read CoStar Group's coverage of the previously announced sale at, Sony to See $770 Million Profit from Sale of U.S. Headquarters
Delivered in 1984, the class A office tower totals 827,686 square feet in Manhattan's Plaza District between 55th and 56th Streets. The transaction involved the sale leaseback of the Sony Building, and Sony Corporation will continue to anchor the building for at least another three years under a deal signed with the new owner.
After repaying debt related to the building and other transaction costs, Sony will receive net cash proceeds of approximately $770 million as announced, and expects to realize a gain of nearly $685 million, to be recorded as operating income, according to a company release.
Douglas Harmon and Adam Spies of Eastdil Secured LLC represented the seller. The buyer handled the deal in-house.
Please see CoStar COMPS #2699386 for additional information on this transaction.