Milstein Properties signs $645M refi for office in Grand Central

Milstein Properties through the entity 335 Madison Avenue LLC as borrower signed a refi loan with lender JPMorgan Chase valued at $645 million for the office building (O4) at 335 Madison Avenue in Grand Central, Manhattan.
The deal closed on February 24, 2025 and was recorded on March 5, 2025. The prior lender was Citibank which held debt that had an original loan amount of $650 million.
The property has 874,744 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $737 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for Milstein Properties was Kevin Buckley . The signatory for JPMorgan Chase was John Spears.

Prior sales and revenue

The 874,744-square-foot property generated revenue of $53.4 million or $61 per square foot, according to the most recent income and expense figures.

The property

The office building in Grand Central has 874,744 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 200 feet and is 215 feet deep with a total lot size of 43,313 square feet. The zoning is C5-3 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The most recent loan totaled $650 million and was provided by Brookfield Properties on October 18, 2019.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $14,820 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on November 20, 2019. On the lot, there is one active major alteration construction project, 121188204, for a 874,734 square-foot B building. The project was submitted by Mark Ospala with plans filed April 24, 2018 and permitted September 13, 2018.

The neighborhood

In Grand Central, The majority, or 83 percent of the 44.4 million square feet of commercial built space are office buildings, with hotel buildings next occupying 8 percent of the space. In sales, Grand Central has 3.9 times the average sales volume among other neighborhoods with $1 billion in sales volume in the last two years and is the 9th highest in Manhattan. For development, Grand Central is the 8th most active neighborhood among other neighborhoods. It had 5.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 12 percent of the neighborhood’s built space. There were four pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of three of the nine commercial properties representing 1,554,921 square feet of the 2,259,037 square feet. The largest owner is Milstein Properties, followed by Savanna and then Empire Capital Holdings.
There are no active new building construction projects on this tax block.

The majority, or 94 percent of the 2.3 million square feet of built space are office buildings, with hotel buildings next occupying 3 percent of the space.

The borrower

The PincusCo database currently indicates that Milstein Properties owned at least four commercial properties with 549 residential units in New York City with 1,450,686 square feet and a city-determined market value of $415.1 million. (Market value is typically about 50% of actual value.) The portfolio has $906.5 million in debt, with top three lenders as Brookfield Properties, Signature Bank, and Wells Fargo respectively. Within the portfolio, the bulk, or 60 percent of the 1,450,686 square feet of built space are office properties, with elevator properties next occupying 38 percent of the space. They are all located in Manhattan.

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