August 12, 2016
SL Green Realty Corp., New York City’s largest office landlord, sold a 40% interest in the 2.3-million-square-foot Eleven Madison Avenue to PGIM Real Estate. PGIM Real Estate is the real estate investment arm of PGIM Inc. which, in turn is Prudential Financial Inc.’s global investment management business.
The Class A office building is valued at approximately $2.6 billion, meaning SL Green will walk away with cash proceeds of approximately $480 million at time of closing. The Manhattan-based landlord will use the cash for debt reduction and other investment opportunities. PGIM Real Estate has a one-year option to acquire an additional 9% stake in the venture at the same property valuation.
Eleven Madison Avenue is in the Midtown South submarket, directly east of Madison Square Park between 24th and 25th Streets. The property spans one full city block. Darcy Stacom and William Shanahan of CBRE advised SL Green on this transaction.
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