Summit Properties Enters Manhattan Office Market
Summit Properties, known for its vast residential holdings across New York City, has unexpectedly ventured into the competitive Manhattan office market, as reported by Realty Check.
The company has acquired the leasehold for 444 Madison Avenue, a notable 42-story Art Deco skyscraper situated between East 49th and 50th Streets, for $41.7 million, according to official records.
This move took many by surprise. Just last month, it was suggested that Savannah, another prominent New York developer, was either purchasing the property or collaborating with Summit in this acquisition.
In an interesting twist, sources indicate that these two companies initially intended to buy the property together, but ultimately, Summit became the sole owner. The seller was Westbrook Partners, which had defaulted on a $120 million mortgage.
“We plan to invest in this iconic building and transform it into an ideal space for high-profile tenants who prioritize location, prestige, and quality,” stated Zohar Levi, Summit’s chairman and majority shareholder.
Interestingly, Summit’s purchase price of $41.7 million is below the $50 million figure mistakenly reported last month. Notably, the building is debt-free. Those in the know mention that Summit has been analyzing the office market trends for a while and believes now is an opportune moment since concerns over remote work seem to be easing and tenant demand is rising.
Summit has quickly brought in Savannah to manage the asset and appointed JLL as the exclusive leasing agent.
The 500,000 square foot building features 135,000 square feet of contiguous office space, which is quite rare in the tightly-packed Manhattan market. Additionally, tenants have the option for prominent rooftop signage, a feature utilized by brands like Burberry, New York Magazine, and Newsweek in the past.
The building is currently home to several tenants, including Schwartz, Sladkus, Reich and Greenberg LLP, and organizations like the Doris Duke Foundation and Capital Dynamics.
Asking rents for office space are anticipated to be between $80 and $100 per square foot, and the tower also offers about 5,300 square feet of retail space.
Beyond this acquisition, Summit boasts a $700 million portfolio of retail malls throughout the U.S. and has interests in two hotels in Manhattan.
Positioned at the heart of a revitalized Madison Avenue, the Summit Prize is conveniently located near significant developments, including JPMorgan Chase’s new headquarters and the ongoing excavation for BXP’s new tower at 343 Madison.
