660 Madison Avenue

Home

About Rockwood

The Rockwood Team

Investment Strategy

The Funds

Investment Highlights

660 Madison Avenue

Location:	New York, NY
Property Type:	Office Condominium
Purchase Price:	$108 million
Profit:	$59 million
Strategy:	Repositioning
Fund:	Rockwood Capital Real Estate Partners Fund IV
Project Level IRR:	24%

Project
This project was an office condominium interest in 660 Madison located on the southwest corner of 61st Street and Madison Avenue. The office portion was comprised of floors 10 through 23 and contains approximately 250,000 square feet. Floors 1 through 9 were occupied by Barney’s, the high end retailer and were not included in the investment.

Investment
The purchase price was $108 million with a gross initial investment of $113 million. The purchase price was capitalized with an $80 million loan an initial equity investment of $33 million.

Value Creation
The opportunity existed to purchase this trophy asset at an 8.1% initial return on cost with in place rents that were 50% below market, with approximately 66% of the building rolling over within 6 years at the time of acquisition. We repositioned and sold the building for $160 million three years later.