Partners on fast track with One Mad conversion plan.SL Green made sure that it would encounter no holdup in executing its development plans for One Madison Avenue, a property it purchased in late March for $918 million. In order to convert the building's 50-story clock tower into residential condominiums and potentially develop the air rights over the massive southern portion of the asset, the Manhattan REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). offered the building's sole office tenant, Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. , a profit sharing profit sharing, arrangement by which employees receive, in addition to their wages, a share of the net profits of a business. The purpose is to give them an incentive to increase their output through enhanced morale, less wasteful use of materials, better care of opportunity in both projects. The offer, which comes in the form of a development partnership that, as of now, required no cash contribution from CSFB CSFB Credit Suisse First Boston CSFB Cyclically Shifted Filter Bank , was extended by SL Green as incentive for CSFB to vacate To annul, set aside, or render void; to surrender possession or occupancy. The term vacate has two common usages in the law. With respect to real property, to vacate the premises means to give up possession of the property and leave the area totally devoid of contents. from its offices in the clock tower and potentially accommodate also the significant construction that would be needed to build the air rights. "Their cooperation can help make this property a lot more valuable and this aligns our interests by giving them profit participation," said Andrew Mathias, the Chief Investment Officer at SL Green. "We decided that we could work together to maximize the value of the property. We both had some of the same ideas about maximizing the value of the building and some of the ideas required us as owner and them as tenant to work together." CSFB, which has a 15-year lease in place for its office space in the building, will share in half the development rights. The owner's ability to develop the clock tower and air rights hinges on CSFB's consent. According to a source at CSFB, the investment bank and financial services firm originally pondered purchasing the One Madison Avenue when it was announced in February that MetLife would unload the property along with its most prominent office tower, 200 Park Avenue. Howard Michaels, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of the real estate investment-banking firm, The Carlton Group, identified and brokered the partnership between CSFB and SL Green. The two are working together to explore potential development of the air rights as well as the retail components. The source at CSFB, which is also a tenant in neighboring 11 Madison Avenue where restaurateur res·tau·ra·teur also res·tau·ran·teur n. The manager or owner of a restaurant. [French, from restaurer, to restore; see restaurant. , Danny Meyer, has his Tabla tabla Pair of small drums, the principal percussion in Hindustani music of northern India, Pakistan, and Bangladesh. The higher-pitched daya, played with the right hand, is a roughly cylindrical one-skinned drum, usually wooden, normally tuned to the raga's tonic. restaurant, said the pair are exploring bringing restaurants to One Mad, too. CSFB also provided the Chetrit Brothers with $640 million in financing for their acquisition and planned residential conversion of the Toy Center, which sits just across Madison Square Park from One Madison. That development, the source indicated, will only be complimentary to the clock tower's reincarnation as a residential property. |
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