TZ Capital has secured a $120 million loan to acquire the retail base at 680 Madison Avenue, Commercial Observer has learned.
The property comprises 34,000 square feet of luxury ground-floor retail below The Carlton House condominium on Manhattan’s Upper East Side,
Goldman Sachs (GS) provided the financing, while a JLL Capital Markets team led by Christopher Peck and Aaron Niedermayer arranged the financing.
The Real Deal first reported last month that TZ Capital, a Palm Beach-based investment firm backed by the fortune of financier Steven A. Tananbaum, had agreed to purchase the retail section of the property from Joe Sitt’s Thor Equities. The purchase price is $180 million, meaning Thor Equities is taking an enormous loss on the $277 million it paid for the property in 2013.
Tananbaum’s son, Tyler Tananbaum, co-founded TZ Capital last year with partner Sam Zuckert and now serves as managing partner at the firm.
“TZ Capital is looking forward to being long-term stewards of 680 Madison and is proud to acquire a property with such excellent tenants,” said Tyler Tananbaum, in a statement. “Our acquisition reflects our conviction that Madison Avenue is well-positioned to capture significant high-street retail growth and a resurgence of New York tourism.”
Sitting between East 61st and 62nd Streets, 680 Madison Ave has featured brand-name retail tenants who include Tom Ford, Brioni, Oscar De La Renta, Missoni, Asprey and Morgenthal Frederics. The property occupies nearly an entire city block and features more than 200 feet of Madison Avenue frontage.
“680 Madison Ave. is an irreplicable retail location with a carefully curated and complementary luxury tenant roster,” said JLL’s Peck. “Retail in general has become a favored asset class and a standout offering such as this was very difficult for lenders to overlook. We are thrilled to have completed another successful financing in a market striving for sure footing.”
Goldman Sachs declined to comment.
Brian Pascus can be reached at bpascus@commercialobserver.com
Robert Khodadadian has long had a simple philosophy about selling real estate. The way he sees it, there are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller at the right time.
Robert Khodadadian, skyline properties, ground leases, ground lease, off market, investment sales, khodadadian, Commercial Real Estate Sales, The Commercial Observer, Retail For Lease, Commercial Observer, Commercial Office Lease
Acquisition, Channel, Finance, More, Players, 680 Madison Avenue, Aaron Niedermayer, Christopher Peck, Joe Sitt, Sam Zuckert, Steven A. Tananbaum, Tyler Tananbaum, New York City, Manhattan, Goldman Sachs, JLL Capital Markets, Thor Equities, TZ Capital
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