RFR Holding, in partnership with an undisclosed real estate investment fund, has acquired the property known as 285 Madison Avenue, a 26-story office building in Midtown Manhattan’s Grand Central district.
Advertising and communications agency Young & Rubicam, which is relocating, sold the 1929-vintage property for a reported $189 million. RFR, a privately held Manhattan-based owner and developer, will invest $50 million in a full repositioning of the vacant property, including infrastructure improvements, common corridors, rest room and other building system upgrades.
The well-located asset can benefit from RFR’s long history of retrofitting office properties and bringing them to their full potential, said RFR Principal Aby Rosen.
"We are confident that after we perform a total building renovation, consistent with the RFR imprimatur, the building will attract a credit-worthy tenancy for long-term leases," Rosen said of the opportunistic acquisition.
In addition to office space, the property also has about 30,000 square feet of retail with 150 feet of street frontage at its Madison Avenue and 40th Street corner.
Please see CoStar COMPs #2627277 for more information about this transaction.