650 Madison Avenue

New York, NY

Project summary

Partner: The Carlyle Group

New York, NY

Total SF: 600,000


The Carlyle Group


  • Office & retail
  • 600,000 SF


May 2011 – September 2013


  • 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  • Outdated office space in need of significant capital improvements to create Class A space to match the Class A location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 / 

  • +$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