Sony announced today that it is selling its U.S. headquarters building located on Madison Avenue in New York City to a real estate consortium headed by The Chetrit Group. The sale price for the 37-story building is $1.1 billion.
"Given the opportunities and challenges in the current economic and real estate landscape, selling 550 Madison now is a timely and logical strategic move," Sony Corporation of America President Nicole Seligman said in the statement, according to Bloomberg.
The sale of Sony's assets is a longtime coming. The company has struggled over the past few years with increased competition and sluggish television sales. Along with getting rid of many of its assets, Sony is also cutting 10,000 jobs. The company is also reportedly looking to sell its Tokyo building for between $1 billion and $1.5 billion.
After paying back debt related to its Madison Avenue building, Sony plans to keep around $770 million from this sale.
While Sony is selling 550 Madison, several of its businesses -- including Sony Music Entertainment, Sony/ATV Music Publishing, Sony Pictures Entertainment, and others -- will stay in the building for the next couple of years.
The deal between Sony and The Chetrit Group is expected to close in March.