New York in Partnership With SL Green and Korean Pension Fund: Hines Developing $2.3 Billion Office Project

Rendering of One Medison Avenue under development by Hines and S.L. Green. Architecture: Kohn Pedersen Fox

In New York, Houston-based Hines, in partnership with the National Pension Service of Korea, purchased a 49.5 percent interest in the One Madison Avenue building for a major redevelopment that will add 17 new floors of office space.

Upon completion, the $2.3 billion project, will span 1.4 million rentable SF.

The stake in the tower was purchased from S.L. Green Realty Corp., the largest landlord in Manhattan.

Hines and the Korean pension fund have committed over $492 million in equity to the project. SL Green Realty Corp. and Hines will co-develop One Madison Avenue.

“Hines and SL Green have worked together for over a decade, and developing One Madison Avenue will be another milestone in our collaborative partnership. Building upon the success of One Vanderbilt, we are excited to move forward with an exemplary tower that will reimagine the Madison Square Park subdistrict,” said Jeffrey C. Hines, President and Chief Executive Officer.

The existing building will be demolished down to the existing ninth floor in order to create 17 new glass and steel, highly efficient, column-free floors above.

The unparalleled podium, which features 90,000 sq ft floorplates, will be paired with the 36,000 sq ft floorplates in the newly constructed tower above.

Interior and exterior work to the existing podium, including revitalizing the lobby, modernizing core elements, enlarging existing windows, all while activating retail space and below-grade spaces in Manhattan’s most in-demand office district.

Outdoor space will be abundant in the building. Between the Garden Floors and terraces throughout the building, One Madison Avenue will offer 1.3 acres of accessible outdoor space. The companies’ publicity material calls it an “exclusive park in the sky.”

SL Green Realty is a REIT focused on acquiring and developing Manhattan commercial properties. SL Green held interests in 102 buildings totaling 49.4 million sq ft at the end of March.

The development announcement comes as New York City battles the deadly coronavirus pandemic, which has taken thousands of lives and crippled the nation’s economy.

“This joint venture partnership serves as an affirmation of New York City’s market resiliency and SL Green’s ability to execute its business goals in a demanding climate,” said Marc Holliday, Chairman and CEO of SL Green.

Hines has a presence in 205 cities in 24 countries and $133.3 billion of assets under management. Currently, Hines has 165 projects under development around the world.