$200M skyscraper sale

Large profit too much to resist, says seller

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SL Green Realty Corp., RFR Holding LLC and Ian Schrager have sold the North Building, or "Clock Tower," at 5 Madison Ave. to Africa Israel for $200 million. SL Green acquired the 41-story, approximately 267,000-square-foot property in 2005, in conjunction with SL Green's acquisition of the adjacent 1.2-million-square-foot South Tower and more than 400,000 square feet of air rights for additional development. Credit Suisse (USA) Inc. originally acted as co-developer with SL Green for the project. The company subsequently converted its ownership position to a participating preferred equity position when it brought in partners RFR Holdings and Ian Schrager to pursue a possible luxury residential conversion for the North Tower, a project that was in the planning stages when the sale decision was made. "We've always been very excited about the potential of the North Building as a luxury residential property. But given its unique characteristics and the incredibly strong market...