L&L In, iStar Out As Buyer Of 635 Madison Ave.
L&L Holding is buying the fee interest on SL Green’s building at 635 Madison Ave. after the previous buyer lost its bid to buy the property.
SL Green announced in May it had sold the fee interest on the office building for $151M in a deal set to close in the third quarter.
Real estate investment trust iStar was under contract to buy the property, but revealed it had lost the bid in a Securities and Exchange Commission filing Monday, The Real Deal reports. L&L sold the interest to SL Green in 2014 for $145M, but kept the right to buy back the interest, which it is now exercising. The purchase price is not yet clear. Ashkenazy Acquisitions holds the ground lease on the building.
SL Green, the city’s largest office landlord, announced late last year it would sell minority shares of its major assets in order to finance the buyback of $1.5B of its shares.
It spun off 43% of its office building at 1515 Broadway to Allianz, and sold 27.6% of One Vanderbilt, its office building under construction across from Grand Central Terminal, to the National Pension Fund of South Korea. SL Green also sold 600 Lexington Ave. for $305M in November.
At the time it announced it was selling 635 Madison Ave., the firm announced it is buying the leasehold of the 2 Herald Square office and retail building.