NEW YORK – Houston-based Hines, together with the National Pension Service of Korea, has acquired a 49.5 percent interest in One Madison Avenue to undertake a major redevelopment that will add 17 new floors of office space.
When completed, the $2.3 billion project will offer approximately 1.4 million rentable square feet.
The minority stake was purchased from S.L. Green Realty Corp., Manhattan’s largest landlord.
Hines and the Korean pension fund have committed more than $492 million of equity to the venture. 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 structure will be demolished down to the ninth floor to allow construction of 17 new glass-and-steel floors above, designed to be highly efficient and largely column-free.
The building will combine an expansive podium with 90,000-square-foot floor plates and a newly constructed tower featuring 36,000-square-foot floor plates above.
Renovations to the podium will update both interior and exterior elements: the lobby will be revitalized, core systems modernized, and existing windows enlarged, while retail areas and below-grade spaces will be activated to serve Manhattan’s most sought-after office district.
Extensive outdoor spaces are planned. With garden floors and terraces distributed throughout the development, One Madison Avenue will provide about 1.3 acres of accessible outdoor space—marketed by the developers as an “exclusive park in the sky.”
SL Green Realty is a REIT focused on acquiring and developing Manhattan commercial properties. As of the end of March, SL Green held interests in 102 buildings totaling 49.4 million square feet.
The development announcement arrives as New York City continues to confront the coronavirus pandemic, which has resulted in significant loss of life and severe economic disruption.
“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 operates in 205 cities across 24 countries and manages $133.3 billion in assets. The firm currently has 165 projects under development worldwide.
May 5, 2020 Realty News Report Copyright 2020
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