NEW YORK CITY – Cushman & Wakefield announced today that it represented 625 Ground Lessor LLC in the $400 million sale of the ground lessor’s position at 625 Madison Avenue, a prime location in the heart of Manhattan’s prestigious Plaza District, to Ashkenazy Acquisition Corporation. The exceptional pricing achieved represents a going-in yield of 1.15% based on contractual ground lease payments through June 2022 – reflecting historically low interest rates, escalating land values due to the strength of the residential and retail market and the scarcity of ground lease offerings. The ground lease expires in June 2054.
Situated within the finest commercial, residential and retail corridor in the world, 625 Madison Avenue spans the full block-front on the East Side of Madison Avenue between 58th and 59th Street. The underlying ground is improved with a 17-story, 563,000 square foot Class A office and retail tower. Fashion industry giant Polo Ralph Lauren occupies 70 percent of the building.
A Cushman & Wakefield team consisting of Brian Corcoran, Helen Hwang, Steve Kohn, Frank Liantonio, Marc Nakleh, Nat Rockett, Karen Wiedenmann and Sujohn Sarkar represented 625 Ground Lessor LLC in the sale.
“The investment benefits from strong sponsorship, long-term upside and a truly irreplaceable location at the core of one of the most luxurious commercial, residential and retail corridors in the world,” said Helen Hwang, Executive Vice President of Cushman & Wakefield.
“A ground lessor’s position in the Plaza District, New York’s epicenter, represents one of the safest options among all asset classes today,” said Brian Corcoran, Executive Vice President of Cushman & Wakefield.
“Leased fee/ground lessor positions are rarely offered in Manhattan so the opportunity was of great interest to investors around the world”, said Steve Kohn, president of Cushman & Wakefield Equity, Debt and Structured Finance.
The office and retail building leasehold at 625 Madison is owned and operated by SL Green Realty Corp., New York City’s largest office landlord and one of the most prominent US public REITs.