By Adam Pincus
London-based jeweler Graff signed a 25-year ground lease with SL Green Realty for 712 Madison Avenue, a five-story townhouse located just north of 63rd Street. The lease was valued at $12.4 million, according to city records. The lease is essentially a net lease giving Graff control of the entire property with the exception that SL Green retains the air rights and development rights.
Graff owns and occupies the adjacent townhouse, 710 Madison Avenue, which is its New York City flagship location. As part of the lease deal, SL Green gave Graff an option to buy 712 Madison for $43 million “subject to increases, prorations and closing adjustments,” between January 1, 2021 and March 1, 2023.
The commercial building contains 5,480 square feet of space with about 1,700 square feet on the ground floor, city records show.
The sale price represents a huge decline in retail values from 2015. In December that year, the Chehebar family’s Jackson Group purchased the building occupied by jeweler David Yurman for $83 million from the Duell family, taking out an unusually low-leverage loan of $33 million from Wells Fargo. Three years later, in December 2018, SL Green purchased the building through an equity acquisition valued at $32.2 million, with the loan remaining in place, city records show.
The DOB issued a major alteration (A1) initial temporary certificate of occupancy for the building on August 31, 2016, when it was converted from partially residential to fully commercial use.