Manhattan-based office REIT SL Green (SLG) has agreed to buy two office buildings near Grand Central Terminal from a group of private investors for $73 million. SLG may even combine the sites to develop a larger office tower in the district: Both 331 Madison Avenue and 48 East 43rd street are located near 317 Madison Avenue, a 450,000 sq. ft. office building that SL Green bought in 2001. With this latest deal, SL Green will own three major office properties located between 42nd and 43rd street along Madison Avenue.
“As individual properties, 331 Madison and 48 East 43rd are attractive commercial office assets on their own – located strategically in the immediate proximity of Grand Central Station, which is SL Green’s stronghold,” says Andrew Mathias, chief investment officer of SL Green Realty Corp.
“The company will also look closely at combining the property sites with 317 Madison Avenue, for the purpose of taking advantage of an unparalleled opportunity to develop a world-class commercial office building in the heart of the Grand Central submarket,” he says.
331 Madison Avenue is 1923-era building with approximately 92,000-sq. ft. of office space. The 14-story property is located on the southeast corner of Madison Avenue and East 43rd Street. The building is 100% leased to finance, law and real estate tenants.