Madison Avenue Office Buildings Sell at All-Time High Prices
Mon, 10 Jun 2013 | Written by Corporate Suites Staff
Some of the biggest news to hit Madison Avenue recently was the $1.4 billion that the families of Chinese and Brazilian real estate developers spent for a 40 percent share of the General Motors Building. The sale resulted in the property becoming worth $3.4 billion – the most valuable office space for rent in the world.
The stake was purchased by the families of Zhang Xin, the founder of Beijing developer Soho China, and Brazilian property magnate Moise Safra. They formed a partnership named Sungate Trust to buy the share of the 50-floor building from Goldman Sachs United States Real Estate Opportunities Fund, which invests for countries of Qatar and Kuwait, and Meraas Capital, a Dubai-based investment firm.
The General Motors Building fills the block between 58th and 59th streets, and Madison and Fifth avenues. It is home to approximately 2 million square feet of office space. Its ground-floor retail space is leased by an Apple store.
The other 60 percent of the building is owned by Boston Properties. Both the Wall Street Journal and Bloomberg report that the real estate firm is not planning to sell its stake.
Madison Avenue and other parts of Manhattan are becoming attractive for investors looking for high yield opportunities. Shortly before the General Motors Building purchase, another sale affected the office space on Madison Avenue. Crown Acquisitions and Highgate Holdings recently finalized a deal to purchase 650 Madison Ave. from the Carlisle Group for $1.3 billion.