SL Green Realty Corp., RFR Holding LLC and Ian Schrager today announced that they have sold the landmark North Building, or "Clock Tower," at Five Madison Avenue to Africa Israel for $200 million.
In a press release from SL Green, Marc Holliday, Chief Executive Officer for SL Green, said that "We've always been very excited about the potential of the North Building as a luxury residential property," adding that "But given its unique characteristics and the incredibly strong market demand for well-located and well-constructed real estate in Manhattan, we received many attractive offers. In the end the partnership couldn't ignore the opportunity to realize a substantial gain. The transaction provides our shareholders with a strong return on investment and allows us to direct resources to other initiatives."
Mr. Holliday concluded, "We look forward to seeing Africa Israel bring the redevelopment project to fruition in such way that New Yorkers will continue to view the 'Clock Tower' as one of the City's true architectural gems."
SL Green acquired the 41-story, approximately 267,000-square-foot landmark in 2005, in conjunction with SL Green's acquisition of the adjacent 1.2-million-square-foot South Tower and over 400,000 square feet of air rights for additional development for a price reported to be $918 million.
Credit Suisse (USA), Inc. originally acted as co-developer with SL Green for the project, according to the SL Green press release, which said that Credit Suisse "subsequently converted its ownership position to a participating preferred equity position when it brought in partners RFR Holdings," which is headed by Aby Rosen, the owner of the Seagram Building and Lever House, and Michael Fuchs, and Ian Schrager, the developer of 40 Bond Street, "to pursue a possible luxury residential conversion for the North Tower, a project that was in the planning stages when the sale decision was made."
Originally constructed in 1909 by Metropolitan Life Insurance Company as its headquarters, the Clock Tower is one of Manhattan's earliest skyscrapers, was the world's tallest building when it was erected, and has had only one prior owner since its inception. The tower was altered in the early 1960s and designated an individual New York City landmark in 1989.
The North and South buildings together overlook Madison Square Park, occupying an entire city block between Madison Avenue and Park Avenue South between 23rd and 24th Streets.
Tomas J. Rossant, a partner with the Polshek Partnership Architects, told the landmarks committee of Community Board 5 last November that the conversion plans entailed replacing the 700-foot-high tower's windows with single-pane windows and creating 140 residential condominium apartments.
The South Building is principally leased to Credit Suisse (USA), Inc., which occupies the facility as part of its headquarters campus.
SL Green Realty Corp. is a self-administered and self-managed real estate investment trust, or REIT, that predominantly acquires, owns, repositions and manages Manhattan office properties. As of March 31, 2007, the Company owned 32 New York City office properties totaling approximately 23.5 million square feet, making it New York's largest office landlord.
Designed by Pierre Le Brun of Napoleon Le Brun & Sons, One Madison Avenue was modeled on the famous campanile in the Piazza San Marco in Venice, which is considerably shorter and has fewer windows.
The tower, which is illuminated at night, has large clockfaces on each of its four sides.
Africa Israel is headed by Lev Leviev, who recently acquired the former New York Times Building at 236 West 43rd Street and half of the Apthorp apartment house on the southwest corner of 79th Street and Broadway.
The Jerusalem Post reported today that Africa Israel plans to spend $110 million to convert the tower to apartments.
In a press release from SL Green, Marc Holliday, Chief Executive Officer for SL Green, said that "We've always been very excited about the potential of the North Building as a luxury residential property," adding that "But given its unique characteristics and the incredibly strong market demand for well-located and well-constructed real estate in Manhattan, we received many attractive offers. In the end the partnership couldn't ignore the opportunity to realize a substantial gain. The transaction provides our shareholders with a strong return on investment and allows us to direct resources to other initiatives."
Mr. Holliday concluded, "We look forward to seeing Africa Israel bring the redevelopment project to fruition in such way that New Yorkers will continue to view the 'Clock Tower' as one of the City's true architectural gems."
SL Green acquired the 41-story, approximately 267,000-square-foot landmark in 2005, in conjunction with SL Green's acquisition of the adjacent 1.2-million-square-foot South Tower and over 400,000 square feet of air rights for additional development for a price reported to be $918 million.
Credit Suisse (USA), Inc. originally acted as co-developer with SL Green for the project, according to the SL Green press release, which said that Credit Suisse "subsequently converted its ownership position to a participating preferred equity position when it brought in partners RFR Holdings," which is headed by Aby Rosen, the owner of the Seagram Building and Lever House, and Michael Fuchs, and Ian Schrager, the developer of 40 Bond Street, "to pursue a possible luxury residential conversion for the North Tower, a project that was in the planning stages when the sale decision was made."
Originally constructed in 1909 by Metropolitan Life Insurance Company as its headquarters, the Clock Tower is one of Manhattan's earliest skyscrapers, was the world's tallest building when it was erected, and has had only one prior owner since its inception. The tower was altered in the early 1960s and designated an individual New York City landmark in 1989.
The North and South buildings together overlook Madison Square Park, occupying an entire city block between Madison Avenue and Park Avenue South between 23rd and 24th Streets.
Tomas J. Rossant, a partner with the Polshek Partnership Architects, told the landmarks committee of Community Board 5 last November that the conversion plans entailed replacing the 700-foot-high tower's windows with single-pane windows and creating 140 residential condominium apartments.
The South Building is principally leased to Credit Suisse (USA), Inc., which occupies the facility as part of its headquarters campus.
SL Green Realty Corp. is a self-administered and self-managed real estate investment trust, or REIT, that predominantly acquires, owns, repositions and manages Manhattan office properties. As of March 31, 2007, the Company owned 32 New York City office properties totaling approximately 23.5 million square feet, making it New York's largest office landlord.
Designed by Pierre Le Brun of Napoleon Le Brun & Sons, One Madison Avenue was modeled on the famous campanile in the Piazza San Marco in Venice, which is considerably shorter and has fewer windows.
The tower, which is illuminated at night, has large clockfaces on each of its four sides.
Africa Israel is headed by Lev Leviev, who recently acquired the former New York Times Building at 236 West 43rd Street and half of the Apthorp apartment house on the southwest corner of 79th Street and Broadway.
The Jerusalem Post reported today that Africa Israel plans to spend $110 million to convert the tower to apartments.
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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