The Carlyle Group is to sell the 27-story office and retail tower at 650 Madison Avenue, New York to Crown Acquisitions and Highgate, for $1.3bn.
Carlyle Realty Partners V, the firm’s $3bn opportunistic US real estate fund, first invested in 2008.
Currently 92 per cent leased, 650 Madison serves as the international corporate headquarters for Polo Ralph Lauren, and has retail tenants including Crate & Barrel and Tod’s.
“We are delighted to reach this agreement with Crown and Highgate, two of the smartest real estate owners around, on the sale of 650 Madison Avenue,” said Robert Stuckey, Carlyle managing director and head of US real estate. “This is a great outcome for our investors and validates our opportunistic approach.”
Originally designed by prominent architecture firm Harrison & Abramovitz in 1957, 650 Madison Avenue is one block east of Central Park and adjacent to the GM Building. It was initially built as a ten-story, corporate headquarters for the C.I.T Corporation. The office tower in its current form was designed by Fox & Fowle and redeveloped by Hiro Real Estate in 1987, adding 17 floors on the existing structure.
Carlyle managing director Andrew Chung, added, “We had a strong conviction in the underlying value of this property when we acquired it during the Great Recession, and we are pleased to capitalize on the success of our active repositioning and leasing plan.”
Copyright © 2013 AltAssets