US real estate investment trust SL Green Realty is selling the 625 Madison Avenue office property in New York for $632.5m (鈧�584m).
The NYSE-listed company said, together with its partners, it has agreed to sell the 17-storey, 563,000sqft office building with ground floor retail space to a global real estate investor.
As part of the transaction SL Green and its partners will originate a $234.5m preferred equity investment in the property, SL Green said, adding that net proceeds from the sale will be used by the company for the repayment of corporate debt.
Situated between 58th and 59th Street, 625 Madison Avenue is located near Central Park in Manhattan鈥檚 Plaza District.
Brett Herschenfeld, EVP of retail and opportunistic investments at SL Green, said: 鈥淭his deal, and our recent capitalization of 245 Park, reaffirm that well-located office real estate in New York is still among the most sought-after asset classes in the world.
鈥淲hether properties are upgraded to state-of-the-art office or are converted into a multitude of other uses that are in high demand, the appetite for Class-A office properties in prime Manhattan locations remains strong and growing.鈥�
SL Green said it acquired its interest in the property through a previous mezzanine investment.
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