Sony Building Sold to Saudi Group, Will Remain an Office Tower

A subsidiary of Saudi investment conglomerate Olayan Group has acquired the Sony Building for $1.4 billion to $1.5 billion. The Real Deal first reported the transaction Monday. Olayan American, along with Chelsfield Group, a London-based property investment company, bought the 850,000-square-foot office tower at 550 Madison Ave. from Chetrit Group and Clipper Equity. Chelsfield will have a minority stake in the property.

Chetrit and Clipper, which bought the Sony Building for $1.1 billion in 2013, planned to convert the officer tower into luxury condos and a hotel. They expected to sell units for $4,000 a square foot. That plan has been abandoned by the new owners, who will maintain the Sony Building as a commercial space.

The electronics giant has closed its retail store at the base of the midtown building and will reopen it at its new headquarters farther south at 11 Madison Ave.