Uptown Madison Avenue, the city’s premier luxury shopping district, is facing significant change in the gilded block where East Midtown meets the Upper East Side.
Two large office-shopping buildings are being demolished to make way for new mixed-use projects, the details of which are few and far between, while well-heeled fashion fans and even more well-heeled real estate investors are wondering what will become of the former Barneys building, which has been vacant for four years.
We first reported in July that Related was planning to demolish 625 Madison between East 58th and 59th Streets to make way for a supertall mixed-use building that could exceed 1,200 feet in height. Related’s Jeff Blau said it would take nine months to demolish the building and an adjacent one and build the new supertall tower that would include luxury apartments, retail and possibly a hotel. Currently, scaffolding is up all over the site.
Via Crain’s, demolition plans have also been submitted for 655 Madison, the 24-story building between East 60th and 61st Streets. The owner, a joint venture that includes Jamestown and Williams Equity, plans to create a “blend of retail, hospitality and residential,” Williams co-president Michael T. Cohen previously told Commercial Observer.
At 625 Madison Avenue, retail tenants have left, most notably Marc Jacobs, which occupied the wide corner lot on the south side, and while there’s signage promising the designer will move to a new location on Fifth Avenue, no lease has been announced for the space. (Negotiations at 645 Fifth Avenue have stalled, as we’ve reported.)
Adding to the uncertainty about its future is the elegant but vacant 10-story former Barneys building across from 655 Madison Ave. at 660 Madison, which continues to baffle real estate insiders and, according to The Real Deal, frustrates investors of principal owner Ben Ashkenazi.
“A major retailer is planning to buy the building for $1 billion, so we decided to leave it vacant,” Ashkenazi told The Real Deal.
Although a large Valentino boutique recently moved into the former Calvin Klein site at 654 Madison next door, much of the block between East 60th and 61st Streets is deserted.
Matthew Bauer, president of the Madison Avenue Business Improvement District, expressed optimism in the long term.
“What sets Madison Avenue apart from other luxury shopping destinations around the world is that the majority of its customer base is local,” Bauer said.
“These new buildings will not only bring new shopping and hospitality venues to the district, but will also attract residents who will become customers of our stores, restaurants, spas, salons and galleries.”
He said the new 625 and 655 Madison will both “likely have primary residential components” and “will follow the precedent of recent new constructions in Madison of having high-end retail on the lower floors and luxury housing on the upper floors.”
He pointed to the nearly completed Giorgio Armani mansion at 760 Madison and projects currently being planned by Naftali Group at 1045 Madison and 1165 Madison further north.
One retail broker, who did not want to be named, saw a bright side in another way.
“Any time a store closes to make way for a new development it’s good business for the other landlord and for us. The stores have to find somewhere to go and right now there are plenty of places for them to go.”
