Trophy Office Development Returns to Midtown as Flight to Quality Persists

SL Green Realty Corp. and Mori Building Co. will construct a 46-story office tower at 346 Madison Avenue, between 44th and 45th streets near Grand Central Terminal. The building will contain 850,000 square feet of rentable space and include terraces, a wellness center with a padel court, an auditorium, and a tenant lounge. SL Green paid $160 million last year for two adjoining buildings on the site that will be demolished. The REIT sold a 49% stake in the project to Mori at a gross valuation of $175 million.

Mori Building previously acquired stakes in SL Green’s One Vanderbilt in two separate transactions over the past two years, each valuing the tower at $4.7 billion. One Vanderbilt, which opened during the pandemic, commands some of the highest office rents in New York and is fully leased. SL Green’s One Madison, which opened in 2023 in the Nomad neighborhood, is also fully leased to finance and technology tenants...

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RSK: The fight to new quality office space is in high demand. A good sign for the office sector.