Jamestown LP is in talks with George Comfort & Sons and Loeb Partners Realty to buy a 49 percent stake in two major Midtown South office properties that would value the pair at $1.15 billion.

The properties are the 870,000-square-foot 63 Madison Avenue and the 750,000-square-foot 200 Madison Avenue.

The deal is expected to close within days, the Wall Street Journal reported.

Jamestown is a major national real estate investor, and owns various New York assets including the Chelsea Market, the Falchi Building, 1250 Broadway and One Times Square, along with a stake in Industry City.

The Atlanta-based firm is looking to pay $710 per square foot on both properties, another sign that Midtown South’s office market continues to soar in value. According to Newmark Knight Grubb Frank data, the vacancy rate in January was 7.9 percent, down from 8.5 percent in the same period in 2015. Office rents are up to $69.84 in Midtown South, NKGF said.

Real estate experts told the Journal that 63 Madison has little ground-floor retail space and has redevelopment potential.

Eastdil Secured’s Doug Harmon and Adam Spies are marketing the properties.

The deal would be one of the first major commercial investment sales of the year.

George Comfort & Sons, partnering with ASB Capital Management, paid $43.75 million for 7 West 18th Street in the Flatiron District late last year.  [WSJ] – Ariel Stulberg

Source: Jamestown to buy 49% stake in 63 Madison, 200 Madison