In a joint venture between Prudential Real Estate Investors and New York's Clarett Group, the 80 year old building at 180 Madison Avenue in New York City has been bought from Sitt Asset Management for $146 million. The 274,000 square foot office building, built on the southwest corner of Madison Avenue and East 34th, stands 23 stories tall and is well located within walking distance of both Grand Central Terminal and Penn Station with access to 12 subway lines. Clarett plans to further improve the asset through a strategic renovation plan to increase the property's value. Veronica Hackett, managing partner of the Clarett Group, said in a prepared release that the company believes that the Midtown market is "poised for robust growth over the next several years." Hackett further noted that the high-quality asset's location will enable the firm to "achieve significant value appreciation."
An anonymous industry source not involved with the same, but familiar with the Midtown market, tells GlobeSt.com that they question where the robust growth will originate "with widespread uncertainty and weakness in the credit and equity markets, strong inflation in food and energy prices, and an economy bordering on recession."
CB Richard Ellis has been hired to manage the leasing of the building. According to MrOfficeSpace.com, asking rents at 180 Madison Ave. are $60 per sf. Current tenants include International Intimates, Vandale Industries Inc., Age Group Ltd., Kellwood Co., A.C.T., Andrew Levin, Bendon USA, Next Generation Intimates, O'Brian Brothers, Pacific Group, Panties Plus, Paradise Lingerie, Riveria Trading Inc., St. Eve International Inc., the Natori Co. Inc. and Vivien International.
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