There has never been a shortage of flagship stores on 5th Avenue and at Cubed Advisory, we expect that Joe Sitt is going to be adding space for one more.
As the Full Story below notes, Sitt's Thor Equities recently purchased 516-520 5th Avenue from Aby Rosen's RFR Holding. Currently a group of 3 tired and surprisingly short buildings, Thor paid $132M for the trio, which works out to an eye watering $838/SF buildable. But when bundled with the 139kSF of air rights that RFR added to the property in 2007, that comes down to a much more reasonable $444/SF buildable.
With a combined as-of-right and air rights buildable SF of almost 300kSF, it is likely that Thor will put up a tower of around 30 floors. Perhaps a few more depending on how the tower conforms to it's zoning envelope. Bonus FAR is available for public amenities. However, given the small footprint (10500SF), it seem unlikely that any sort of urban plaza is going to appear and bolster the buildings FAR. Offices above will be able to command solid rents with their views of Bryant Park, but it will be the ground floors that will be worth watching. After Uniqlo opened late last year further up 5th Avenue in a $300M, 15 year deal it seems all but certain that Thor will be marketing the first few floors of his new development to a large retail interest.
Labels: Aby Rosen, commercial, development, Joe Sitt, Midtown, retail, RFR Holding, Thor Equities