by Howard Morrel & Leslie Hirsch
57th Street Report
Preparations are underway for the demolition of the existing 24-story office building at 655 Madison Avenue, located at the corner of East 60th Street on Manhattan’s Upper East Side. This development paves the way for a new 37-story mixed-use tower envisioned by Extell Development and designed by Beyer Blinder Belle. The forthcoming 193,000-square-foot structure will feature 62 residential units along with ground-floor retail space.
Extell’s Strategic Acquisitions and Development Plans
In October 2024, Extell acquired the existing building from Williams Equities for approximately $160 million. Financing for this acquisition was provided by Tyko Capital, backed by Elliott Investment Management. Additionally, Extell purchased three adjacent low-rise buildings at 35, 37, and 39 East 60th Street from Solil Management for $103.3 million. These acquisitions collectively add around 28,000 square feet to the development site and include 99,000 square feet of air rights.
Potential Retail Opportunities and Project Timeline
Fashion house Chanel is reportedly considering a $450 million purchase of nearly 65,000 square feet of retail space within the new development, encompassing the ground floor, cellar, and potentially additional above-grade levels. While demolition of the current structures is expected to conclude by the end of this year, a specific construction timeline for the new tower has yet to be announced.
Want to learn more? Let’s talk!
All the best,
Howard Morrel & Leslie Hirsch
Christie’s International Real Estate Group
(212) 956-4823
mha@christiesrealestategroup.com
