Overview
- The companies announced Wednesday that SL Green sold a 49% stake in the 346 Madison Avenue project to Mori Building at a gross valuation of $175 million and formed a joint venture to develop the site.
- SL Green will retain a 51% stake and act as the development and leasing manager for the new tower.
- Kohn Pedersen Fox will design the roughly 850,000-square-foot, 46-story building, which the partners plan to equip with a two-floor amenity center, a 215-seat auditorium, tenant lounges, outdoor terraces, a fitness and wellness facility, and ground-floor restaurant space.
- The project is in predevelopment planning and no construction start date or full financing package has been disclosed by the partners.
- The deal marks Mori’s first New York development and reflects growing Japanese capital flowing into high-end U.S. office assets as Manhattan leasing recovers and demand concentrates on newly built or extensively upgraded trophy properties.