NEW YORK | 625 Madison Ave | FT | FLOORS

[NYguy]

...many view the property as a prime development site where the 1960s-era office building could be demolished and replaced with high-end residential condos.

If someone saw that value and bid up the price, they would either have to find a way to boot SLG from its lease or work with the REIT to redevelop the site.

Either way, it's a prime development site that could see a nice tower rise.

[NYguy]

https://therealdeal.com/new-york/202...adison-avenue/

SL Green finally boots Ashkenazy at 625 Madison Ave
Marc Holliday and his partners now control fate of prime Plaza District site


By Rich Bockmann
August 16, 2023

SL Green took over Ben Ashkenazy’s interest at 625 Madison Avenue today — closing a chapter on a years-long dispute over the property and paving the way for what could be big changes at the prime Plaza District site.

The Marc Holliday-led company and its group of lending partners acquired the stake at a UCC auction earlier this morning, according to auctioneer Matthew Mannion of Mannion Auctions. The lenders, who held a $195 million mezzanine loan that Ashkenazy used to finance the property, moved to foreclose in June.

….. The question now: What will become of the 17-story, 1950s-era office building between East 58th and 59th streets, a block away from Central Park?

Ashkenazy purchased the ground underneath the building in 2013 for $400 million — a price that indicated he was eyeing a large increase when the rent reset in 2020. SL Green, which controlled the building under a long-term lease, was paying just $4.5 million at the time, and Ashkenazy’s team floated the idea it could jump to as high as $80 million.

That number was partially based on the view that the best use for the property would be to tear down the office tower and build high-end condos with Central Park views a la the buildings rising around Billionaires Row.