SL Green Realty Corp. has completed the sale of a 49% joint venture interest in the development of 346 Madison Avenue to Mori Building Co., Ltd., which is described as Japan’s leading urban landscape developer. The transaction values the development at a gross valuation of $175.0 million. Following the deal, SL Green will retain a 51% interest in the project, preserving its majority stake while bringing in Mori Building as an equity partner in the office development.
Under the joint venture structure, SL Green will act as the development and leasing manager for 346 Madison Avenue. The companies describe the project as a collaboration between SL Green and Mori Building, with the two firms partnering to advance the office tower’s planning and execution. The development is positioned within East Midtown and is being framed by the participants as a next-generation office asset.
SL Green chairman and CEO Marc Holliday said that 346 Madison Avenue is expected to establish a new benchmark for innovative office development in East Midtown and characterized Mori Building as an ideal partner for realizing that vision. He added that tenant demand for the highest-quality, best-located, and most thoughtfully designed buildings is currently far in excess of available supply, underscoring the strategy behind developing modern office product at this location.
The site for 346 Madison Avenue is located one block from Grand Central Terminal and directly across from One Vanderbilt, placing the project in a highly trafficked transit and office corridor. The planned tower is being designed by architecture firm Kohn Pedersen Fox (KPF), according to the announcement. The building is expected to rise 46 floors and contain approximately 850,000 rentable square feet of office space when completed.
The details released emphasize the combination of institutional capital, experienced development and leasing management, and a prime East Midtown location anchored by proximity to Grand Central Terminal. While no timeline, leasing commitments, or financing structure beyond the joint venture equity have been disclosed, the transaction confirms a significant capital commitment to new office construction in this submarket and clarifies valuation expectations for this particular ground-up project.
