By Barbra Murray, Contributing Editor
With commercial real estate investment brokerage and banking firm Eastdil Secured leading the marketing effort, Sony Corporation of America has settled on a buyer for its Manhattan headquarters building at 550 Madison Ave. Acting as 550 Madison Fifth L.L.C, a consortium spearheaded by commercial property owner The Chetrit Group won the bid to acquire the 850,000-square-foot high-rise and will fork over $1.1 billion to close the sale-leaseback transaction. The group was not the only one that was willing to fork over a billion-dollars-plus.
?It was a wonderful process I must say,? Benjamin V. Lambert, chairman of Eastdil, told Commercial Property Executive. ?We started with a truly magnificent piece of real estate?Philip Johnson created a real icon at 550 Madison?so it was not difficult to sell. Our own reading of the market indicated that there would be enormous interest.?
And so there was? approximately 22 bidders, serious bidders in the form of national and international real estate owners and developers, came forward with offers meeting or exceeding the set $900 million minimum.
Sony, which has called 550 Madison home since 1992, had acquired the 37-story tower from AT&T in 2002 for a reported $236 million. After all is said and done, Sony will pocket approximately $770 million on the deal with Chetrit and, as per terms of the sale-leaseback transaction, will continue to occupy the property for three years.
The sale is on track to close in March of this year.
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