One of Manhattan’s most-watched sites has been the Fifth Avenue space Prada purchased from Jeff Sutton for more than $800 million. The retail giant appears to be putting a big piece of the puzzle in place.
Jeff Blau’s Related Companies is nearing a deal to develop a skyscraper at 720-724 Fifth Avenue, the Commercial Observer reported. The building may be attached to the Aman hotel and residences adjacent to the site; tenants may even be able to utilize the amenities next door, per the report.
Blau is negotiating to develop a 225,000-square-foot building. Prada would have a store at the base of the property and corporate offices above that. The building would also feature luxury residences that could command five figures per square foot. Prada would reportedly need to relocate during construction of the property.
Prada retained JLL to look for development partners earlier this year. The luxury brand fielded meetings with developers in Italy, resulting in Related’s victory over the likes of Vornado Realty Trust and SL Green.
JLL, Prada, Related, Sutton, SL Green and Vornado all either declined comment or did not return the publication’s requests for comment.
In late 2023, the Italy-based fashion company agreed to purchase 724 Fifth Avenue for $425 million. Jeff Sutton’s Wharton Properties was the seller in the deal, which broke down to $6,538 per square foot for the 65,000-square-foot property.
Days later, another shoe dropped when Prada’s $410 million purchase of the neighboring property at 720 Fifth Avenue was revealed. That property was also owned by Sutton.
Prada started at 724 Fifth under a long-term lease beginning in 1997.
Sutton refinanced 724 Fifth for $235 million three times — in 2014, 2017 and 2021 — and for $260 million in January 2023. He and SL Green had bought the building for $200 million in 2012; Sutton’s company took full ownership of it in 2018 by buying out SL Green’s 50 percent stake.
— Holden Walter-Warner
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