Madison Ave. Blockbuster

April 9 , 2008
Lois Weiss
New York Post

Sending a sigh of relief through the investment sales community, Ashkenazy Acquisitions and The Carlyle Group closed their deal for 650 Madison Ave. on Tuesday night for $680 million.

It is the largest transaction so far this year as credit crunch worries have plagued the marketplace.

Ashkenazy Vice Chairman and President Michael Alpert said he and Ben Ashkenazy had significant lender interest.

In the end, they put together a syndicate of lenders that included the French bank Natixis and San Francisco-based Shorenstein, which bought a mezzanine piece of the debt, albeit for a higher interest rate.

"It wasn't about price but about certainty of closing," said Alpert. "The rents are significantly below market and we will look to reposition the retail and the office over time while exploring all options."

Home furnishings retailer Crate & Barrel and Italian shoe and leather goods store Tod's are the largest retailers in the building, which sits across East 59th Street from Harry Macklowe's GM Building.

The largest office tenant is Polo Ralph Lauren, with the rest a mix of fashion and financial firms.

"We expect to own this for generations," Alpert said, scoffing at rumors that they were selling 650 Madison's retail portion.

The purchase also makes Ashkenzy the largest owner of retail in that area, as they also own the Barney's retail condominium at nearby 600 Madison Ave.