11 Madison Sells for $675M

NEW YORK CITY-The MetLife Insurance Co.-owned, two-million-plus sf 11 Madison Ave. is in the process of being acquired by Tamir Sapir of Zar Realty Management Corp. for $675 million. A MetLife spokesperson had no comment on the possible pending deal. Eastdil’s New York office was the broker in the transaction which is expected to close by the end of the year.

Built in 1932, the Midtown building underwent a complete redevelopment ten years ago, including complete retrofit of all base building systems. That effort included upgrading elevators, HVAC system, electrical service and windows.

Current tenants in the 100% leased site include Credit Suisse First Boston, which occupies the bulk of the building, IBM and Omnicom-OMB. There is also a retail component and the restaurant, 11 Madison Park.

“11 Madison is a major property,” says Jon Caplan, executive director at Cushman & Wakefield, which is the managing agent at the property. “It’s another example of the confidence in the New York market and the strength of investments.”

Last month, Zar Realty ended a long-standing legal action with the MTA over 2 Broadway, relating to the MTA’s long-term net lease of the Zar-owned property. The 1998 lease and subsequent renovations lead to various disputes between the MTA and ZAR resulting in multiple cumbersome lawsuits since 2000. The matter was also investigated by law enforcement agencies that concluded that both the MTA and Zar were victimized third parties in connection with the renovation. The pair came to “a mutually acceptable resolution” and “look forward to an amicable and mutually productive relationship in the future,” according to an MTA statement.