SL Green signs 273,000 s/f leases at 625 Madison Ave.

Four months after paying $231.5 million for 625 Madison Avenue, SL Green Realty Corp. has boosted the building's occupancy to 92% signing two leases totaling 273,000 s/f.

In a transaction that will undoubtedly add value to the building, SL Green announced it has completed a 186,000 s/f lease with Polo Ralph Lauren Corporation at the property, which was formerly known as the Revlon Building.

When SL Green acquired 625 Madison in October 2004, it was only 68 percent leased due to Revlon's departure in 2003.

The 15-year Polo lease comes on the heels of an 87,000 square foot lease announced with Related Capital Company, a subsidiary of CharterMac.

Polo Ralph Lauren will occupy approximately one-third of the property, including most of the space formerly occupied by Revlon.

Committed to expanding its presence in the midtown market, Polo will use the space for their corporate offices and as a hub within midtown.

Related Capital Company, a subsidiary of CharterMac and one of the nation's premier multifamily financial services firms, has signed an 87,000 s/f lease at the property.

The 10-year lease consists of a 43,000 s/f renewal and a 44,000 s/f relocation and renewal. With this lease, the company will continue to occupy two full floors at 625 Madison.

Marc Holliday, president and chief executive officer of SL Green, said his firm was always confident of 625 Madison's ability to turn a profit.

"Due to the shortage of large, contiguous blocks of premium office space in Midtown Manhattan, we recognized a significant opportunity to create value when we acquired 625 Madison last October," said Holliday.

"We're pleased that we were able to accommodate Related Capital's evolving office space needs, doubling the size of its lease by adding an additional floor.

"We're enthusiastic that 625 Madison attracted a top-tier, high quality company, such as Polo Ralph Lauren, nearly completing our leasing objectives for the property within four months of the acquisition."

Steven Durels, executive vice president and director of leasing at SL Green, negotiated both leases on behalf of SL Green.

"This transaction underscores our ability to structure complex transactions and to meet the specific goals of our tenants," said Durels.

"SL Green was flexible and creative in responding to the operational and financial requirements of Polo Ralph Lauren, and was able to offer expansion opportunities the firm can take advantage of over the life of the lease."

Mitchell Steir, CEO, David Goldstein, Matthew Barlow, and Michael Leff of Studley, Inc. represented Polo Ralph Lauren in the transaction.

The building's leasing agents are Jonathan Serko, Barry Zeller and David Malawer of Cushman & Wakefield.

625 Madison is a 558,000 s/f, 17-story building located in the highly desirable Plaza submarket. It is situated between 58th and 59th Streets along the prestigious stretch of Madison Avenue commonly referred to as "The Golden Mile."

SL Green Realty Corp. is the largest commercial landlord in Manhattan with 28 properties comprising more than 17 million square feet.