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December 21, 2016  

PGIM Team Pitches Madison Avenue Offices

A PGIM Real Estate joint venture is marketing the office tower at 180 Madison Avenue in Midtown Manhattan.

The value of the 281,000-square-foot property is estimated at $250 million to $300 million, or up to $1,068/sf.

PGIM, a Prudential affiliate, and its local operating partner, Clarett Group, awarded the listing to Cushman & Wakefield after conducting a beauty contest that also included CBRE, Eastdil Secured and HFF.

The 23-story building, at the southeast corner of East 34th Street in the Midtown South submarket, was renovated in the past few years in an effort to attract more technology, advertising and media tenants. The improvements included upgrades to the lobby, elevators and windows.

The occupancy rate is 69%, according to CoStar. Tenants include advertising-sales firm Rubicon Project and marketing technology company Unified Social. Such companies continue to be drawn to Midtown South as a less-expensive alternative to Midtown.

The average asking rent in the third quarter was $70.29/sf in Midtown South, $79.91/sf in Midtown and $73.71/sf in Manhattan overall, according to Cushman.

The Madison Avenue building has a retail component and multiple floors with office/showroom space. Some of that space dates back to when the property was known as the Lingerie Building, because its rent roll included multiple undergarments firms.

The property was built in 1926 and renovated in 1998 and 2003. SL Green Realty of New York teamed up with a Morgan Stanley fund in 2000 to buy it from an unidentified investor for $41.3 million. The partnership sold it in 2005 to Sitt Asset Management of New York for $92.7 million. Sitt sold it to the PGIM team in 2008 for $158 million.