650 Madison Avenue
New York, NY
Project summary
Partner: The Carlyle Group
New York, NY
Total SF: 600,000
Partner
The Carlyle Group
Property
- Office & retail
- 600,000 SF
Timing
May 2011 – September 2013
Opportunity
- Irreplaceable Madison Avenue address and location
- Corner avenue located with large floor plates and good natural light
- A significant portion of the building was under-market retail space
- Substantial near term roll of medical office space located in the base of the building
- Undermanaged property led to poor market positioning
- Outdated office space in need of significant capital improvements to create Class A space to match the Class A location
Value Add / Execution
- +$40MM capital improvement plan including a new lobby, façade, elevators, common corridors, HVAC, exterior lighting and bathrooms
- Created targeted marketing program for top paying Hedge Funds
- Re-activated the retail space, unlocking a large part of the buildings embedded value
- Tapped market scarcity to lease base floor medical office for an 80% net premium
- 100% leased at time of sale to world-class tenant roster: Ralph Lauren, Tod’s, Memorial Sloan Kettering and Crate & Barrel
- The sale price was the largest, both in terms of total dollar amount and PSF, in the U.S in 2013