SL Green and Mori Building Co., Ltd. form joint venture for new development at 346 Madison Ave.

Manhattan, NY SL Green Realty Corp., one of the city’s largest office landlord, today announced that it has closed on the sale of a 49.0% joint venture interest in the development of 346 Madison Ave.to Mori Building Co., Ltd., Japan’s leading urban landscape developer, at a gross valuation of $175.0 million. SL Green will retain a 51.0% interest in the project and will serve as the development and leasing manager. The project will be a collaboration between SL Green and Mori Building, uniting the collective vision, design capabilities and development expertise of both firms.

“346 Madison Ave. will set a new benchmark for innovative office development in East Midtown and Mori Building is the ideal partner to join us in the realization of that vision,” said Marc Holliday, chairman and chief executive officer of SL Green Realty Corp. “Tenant demand for the highest-quality, best-located, and most thoughtfully designed buildings far exceeds available supply. This is the perfect moment for SL Green and Mori Building to conceive and build the next great New York City office building.”

“We are pleased to advance Mori Building’s first development project in New York alongside SL Green,” said Shingo Tsuji, president and chief executive officer of Mori Building Co., Ltd. “By uniting the expertise and networks of both SL Green, a driving force in shaping Manhattan’s urban landscape, and Mori Building with its deep experience in large-scale urban development in Tokyo, we will create a new landmark that defines New York City.”

346 Madison Ave. is located one block from Grand Central Terminal and across from One Vanderbilt, making it the single best development site in midtown Manhattan. KPF will design the new 46 floor tower, which will be approximately 850,000 rentable s/f with side core, column-free floorplates featuring 15’-22’ ceiling heights. The all-electric building will achieve the highest level of sustainability and WELL certifications.

The building’s unique design includes 9 terrace floors, 9 floors with loggias and oversized windows throughout. A two-floor amenity offering includes a 215-seat auditorium, tenant lounge with an épicerie operated by famed Michelin star chef Daniel Boulud and complemented with a lushly landscaped terrace overlooking Madison Ave. A luxury wellness center will feature a tenant-only fitness center, the only regulation size padel court within an office building together with spa quality locker rooms. Additionally, a world-class restaurant is expected to occupy the ground floor. The combination of cutting-edge design, healthy workplace infrastructure and exceptional amenity offerings will make 346 Madison the unrivaled leader for the next generation of office development.

“346 Madison Ave. is a singular opportunity to design a new tower of lasting architectural significance just steps from Grand Central Terminal,” said James von Klemperer, president, KPF. “Building on our partnership with SL Green at One Vanderbilt and One Madison Ave., and with Mori Building on various projects around the world including Tokyo and Shanghai, the design will ensure 346 Madison sets a new standard for office quality while enhancing the New York City skyline and the surrounding neighborhood.”