Real estate investment, development and management firm Hines Interest LP and the National Pension Service of Korea purchased a 49.5% stake in One Madison Ave., a $2.3 billion, adaptive reuse development in Midtown Manhattan. The stake was sold by SL Green Corp., the company overseeing One Madison Ave.’s redevelopment and Manhattan’s largest office landlord.
The property, which is projected to add nearly 1.5 million square feet of Manhattan office space, overlooks Madison Square Park and offers easy access to Midtown’s transportation system.
One Madison Ave. was built in 1893 and subsequently rebuilt in 1953. Later, plans to redevelop the property were announced in December 2018, and the project is scheduled for completion in 2024.The building — which occupies a full block surrounded by Madison and Park avenues — will be demolished down to the existing ninth floor, and 17 new glass and steel column-free floors will be added.
The finalized project will feature a revitalized lobby, modernized core elements, two garden floors and 29,000 square feet of terrace space. One Madison Ave. is also projected to earn a LEED Gold rating, and will have approximately 1.3 acres of outdoor space. Kohn Pedersen Fox Associates is the project’s lead architecture firm.
Marc Holliday, chairman and CEO of SL Green, dubbed One Madison Ave. as the most ambitious adaptive reuse project in Midtown South, while also noting the difficult climate in which the deal took place and the resilience of the New York office market.
SL Green, Hines and Kohn Pedersen Fox also recently partnered for the development of One Vanderbilt, a supertall office building under construction in Midtown Manhattan that recently reached 67% occupancy after two leases were signed in April. Upon completion, One Vanderbilt will add a total of 1.4 million square feet of Class A office space to the Midtown submarket.