On June 14, 2002, SITQ Immobilier, a member of the Caisse de dépôt et placement du Québec real estate group, entered into a joint venture with Macklowe Properties, operated by Harry and William Macklowe and one of New York City’s most prominent developers, in connection with the redevelopment of the property located at 340 Madison Avenue in New York. The building is a 700,000 square foot office tower in mid-town Manhattan.
The joint venture was accomplished through a complicated transaction valued at $95 million, consisting of a combination of equity and mezzanine financing. As a result of the transaction, SITQ acquired approximately 49.9 per cent interest in the property and the Macklowe group retained the remainder. Additionally, in connection with the acquisition, the joint venture increased the financing on the property from Deutsche Bank to $168 million. With this increased financing, the value of the entire redevelopment project is over $250 million.
SITQ was represented by Davies Ward Phillips & Vineberg LLP, with a team including Pierre-André Themens and Robert Abrams in Montreal, and James Guadiana, Joshua Wanderer, Marc Berger and Michele Alexander in New York, under the leadership of SITQ’s in-house counsel Claude Molleur.
The Macklowe group was represented by Fried, Frank, Harris, Shriver & Jacobson, with a team including Robert Sorin, Robert Cassanos, Eric Feuerstein and Brian Kniesly. Deutsche Bank was represented by Skadden, Arps, Slate, Meagher & Flom LLP, with a team that included Harvey Uris, Thomas Maira and Anthony Rutledge.