SL Green has sold 690 Madison Ave. to Jeff Sutton six months before the loan tied to the property is set to mature.

Sutton's Wharton Properties scooped up the mixed-use, nearly 8K SF building for $34M, according to a deed filed with the city Wednesday. Eastdil Secured represented SL Green in this transaction.

In 2021, SL Green took the property over from Ashkenazy Acquisition Corp. in a foreclosure sale for $74M, just under 65% of what was paid in 2015. SL Green had held a mezzanine loan on the property.

In its latest investor presentation, SL Green listed the property as part of its “alternative strategy portfolio.” The building is tied to $60.6M in debt maturing in July, with the landlord expecting a $31.5M net cash loss, according to the presentation.

Bank of China held a mortgage tied to the building, according to property records. A UCC termination was filed between SL Green and Bank of China in conjunction with the sale to Wharton.

When SL Green acquired 690 Madison, the five-story building was occupied by luxury fashion retailer Hermès. Last month, it was reported that French jeweler Van Cleef & Arpels opened its third New York City boutique in the landmarked building.

The retailer signed off on the lease in the second quarter of 2023 for $4.3M, or about $355K per month, according to Compstak data provided to Bisnow.

In July, SL Green closed on the sale of 625 Madison Ave. just blocks away for $634.6M to Related Cos., which plans to demolish the office building and replace it with a luxury hotel and condos.

Wharton Properties is known for its retail properties on luxury corridors. The landlord sold flagship properties to Prada and Gucci's parent company on Fifth Avenue a year ago for more than $1.7B combined.

Neither SL Green nor Sutton immediately responded to Bisnow’s request for comment.

This year has marked a major turnaround for SL Green, which is New York’s largest office landlord. The REIT told The Wall Street Journal that it is set to lease 3.5M SF this year, exceeding its target by 1.5M SF. Its stock price is up 60% year to date.

Among its largest transactions this year is the sale of an 11% interest in One Vanderbilt to Japanese developer Mori Building Co., which valued the supertall at $4.7B. SL Green retains a 60% stake in the tower.