Leasehold at 515 Madison Changes Hands
January 13, 2010
By: Paul Bunby

In another deal suggesting signs of renewed life in the investment sales market, the fee and senior leasehold positions in 515 Madison Ave., the old DuMont Building, have changed hands. The transaction, which was financed with a loan from Wells Fargo, that values the 42-story office property at $150 million, or $440 per square foot.

Acquiring a majority interest in 515 Madison was a joint venture of the Gural and Hemmerdinger families, which controlled the previously existing subordinate leaseholds at the 340,000-square-foot property. "Consolidating the ownership interests made sense to do now," says Woody Heller, executive managing director of Studley’s capital transaction group, which represented the Malloy and Sheffer families in the sale of their majority interests. ...

... Both tenants outgrew the building in the past two years, "which resulted in the property having sufficient vacancy to warrant upgrading and repositioning," Heller says in the release. He adds, however, that the renovation "could not be justified given the short duration that remained on the existing leasehold. Therefore, it made sense to consider consolidating the ownership interests, which eventually led to the deal that just completed." ...

... The circa-1931 515 Madison was designed by J.E.R. Carpenter. It was nicknamed the DuMont Building for broadcaster Allen B. DuMont, who began the first television broadcasts on station WNYW in

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