GIA Signs a Gem of a Deal
January 12, 2010
By: Steve Couzzo

Giant, new office leases are popping up all over. ...

... In the latest evidence of a modest revival on the investment-sale front, a complex transaction among partners that was just completed values 515 Madison Ave., a 340,000 square-foot, 42-story prewar tower at 53rd Street, at $150 million, or about $440 per square foot.

Ownership of the property was previously sliced into the fee and three different leaseholds. In the deal brokered by Studley's Woody Heller and its Capital Transactions Group, the Malloy and Sheffer families sold amajority interest in their fee and leasehold stakes to a joint venture led by the Gural and Hemmerdinger families, who previously controlled the subordinate leaseholds. ...

...  Consolidating the ownership interests made sense now," Heller said. The 95 percent-occupied building has enjoyed some improvements, but, Heller said, "[full] renovation could not be justified given the short duration that remained on the existing leasehold." ...
 

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