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SL Green sells stake in 747 Madison Avenue retail

Landlord also signs Metro-North to 265K-plus square feet at Graybar building

From left: 747 Madison Avenue, 420 Lexington Avenue and SL Green's Steven Durels
From left: 747 Madison Avenue, 420 Lexington Avenue and SL Green's Steven Durels

Landlord SL Green Realty sold its 33.3 percent stake in the retail co-op at the 17-story Colony House building at 747 Madison Avenue — valuing the space at roughly $160 million, the company said.

SL Green partnered with retail investor Jeff Sutton in the project, which is now fully occupied after an undisclosed European fashion house signed a 15-year lease for a 2,800-square-feet spot. SL Green will also pump $30 million into the property in conjunction with the sale.

Fashion label Valentino had occupied the 6,700-square-foot space at the base of the Colony House — largely a residential building — until its 10-year lease expired last year, as previously reported. The brand had also leased a 3,100-square-foot lower level for storage.

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Separately, SL Green sold a 50 percent interest in the retail component of 21-29 West 34th Street. The buyers of both stakes are unknown.

As for 21-29 West 34th Street, SL Green still owns a 50 percent share of 152,000 square feet of development rights attached to the property. Architect Ismael Leyva intended to a design a tower there in 2007, but the plans were abandoned and two low commercial buildings were built instead. Tenants include shoe manufacturers Aldo and Geox.

In addition, Metro-North Commuter Railroad, an affiliate of the Metropolitan Transportation Authority, signed a 20-year lease to renew at another SL Green address, the 30-story Graybar building at 420 Lexington Avenue, where the landlord makes its headquarters.

The company currently has 133,503 square feet on the 11th, 12th and 22nd floors, but will now also get 132,400 square feet over the full 10th floor and parts of the second, third and fifth floors, the release said. — Mark Maurer

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