Strategic Development of 343 Madison Avenue with Anchor Tenant and Capital Structure
Proceeding with full vertical construction for late 2029 delivery, with site prep and foundation work underway since October 2024.
Executed a letter of intent with a prestigious investment-grade financial institution for approximately 30% of the building.
Plan to buy out the 45% joint venture partner for about $44 million, citing partner’s shift in investment focus.
Projected stabilized cash yield of 7.5% to 8%, with potential for high single-digit IRR on levered basis, depending on exit cap and sale timing.
Estimated total development cost of just under $2 billion, with strong pre-leasing activity and high demand for premier office space in Midtown Manhattan.
Strategic Focus on Operational Excellence and Technology Adoption
Management emphasized the importance of operational excellence supported by in-house technology, including AI, to improve resident experience and leasing efficiency.
AI implementation has enhanced leasing processes, providing 24/7 resident inquiries and freeing up staff for more personalized service.
Future plans include expanding AI applications into resident communication and maintenance, indicating a strategic move towards tech-driven operational improvements.
Dafinchi