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By: TJVNews.com
Madison Avenue, long celebrated as one of New York City’s most prestigious luxury shopping corridors, is on the cusp of transformative change. The stretch of gilded blocks where East Midtown converges with the Upper East Side, home to high-end boutiques and iconic retail spaces, is witnessing a significant shift as longstanding structures are razed to make way for ambitious mixed-use developments. This evolution, however, is not without its uncertainties and speculations, particularly concerning the future of the former Barneys building, which has stood vacant for four years.
According to a recently published report in The New York Post, the most significant development in this area is the forthcoming demolition of 625 Madison Avenue. This 22-story office building, located between East 58th and 59th Streets, is set to be replaced by a supertall tower that could redefine the skyline. The developer, Related Companies, is spearheading the project, and its CEO, Jeff Blau, has hinted at a structure that may soar over 1,200 feet, as was noted in The Post report. The new tower is expected to house luxury condominiums, high-end retail spaces, and possibly a hotel, making it a landmark of modern urban living.
The demolition of 625 Madison, which will take approximately nine months, is already underway, with scaffolding encasing the entire property. This ambitious project reflects the broader trend of transforming office buildings into mixed-use developments, a shift driven by changing demands in the post-pandemic era, where luxury living and experiential retail are increasingly intertwined.
Just a few blocks north, another significant transformation is set to occur at 655 Madison Avenue. This 24-story office building, situated between East 60th and 61st Streets, is also slated for demolition. The building’s owners, a joint venture between Jamestown and Williams Equity, have filed plans for a new development that will include a blend of retail, hospitality, and residential spaces, as was indicated in The Post report. According to Michael T. Cohen, co-principal of Williams Equity, the project’s objective is to create a dynamic environment that caters to the evolving needs of the neighborhood’s affluent clientele.
As with 625 Madison, retail tenants have vacated 655 Madison in anticipation of the redevelopment. Notably, Marc Jacobs, which occupied a prominent corner space, has yet to announce a new location on Fifth Avenue, despite rumors of a potential move to 645 Fifth Avenue falling through. The uncertainty surrounding these developments adds to the sense of flux on Madison Avenue, where even the most established brands are reconsidering their presence.
Amidst these sweeping changes, the fate of the former Barneys New York building at 660 Madison Avenue remains a mystery. Once a beacon of luxury retail, the 10-story structure has been vacant since Barneys closed its doors in 2019. As confirmed in The Post report, despite its prime location across from 655 Madison, the building has yet to find a new tenant or purpose, much to the frustration of its investors and the curiosity of real estate insiders.
Ben Ashkenazy, the building’s main owner, has kept his cards close to his chest, telling The Real Deal that he is holding out for a major retailer to purchase the property for $1 billion. However, with no concrete plans in sight, the building’s continued vacancy casts a shadow over the block, which otherwise boasts some of the city’s most sought-after real estate.
Unpublished reports indicate that real estate entrepreneur and business expert, Jeff Sutton, was brought in to find a buyer who was willing to pay $1 billion for 660 Madison. In exchange for his efforts, Sutton was expected to receive a commission if the deal goes through.
According to sources close to the Manhattan commercial real estate scene, luxury brands are no longer seeking rental space on Madison Avenue, but rather have opted to purchase their own buildings. The source who spoke on the condition of anonymity said, “We understand that a real estate insider and business expert was the one who was able to get the $1 billion buyer for Ashkenazy’s building.”
The surrounding area has not been immune to the effects of this uncertainty. While Valentino recently moved into the former Calvin Klein space next door at 654 Madison, much of the block between East 60th and 61st Streets has taken on a desolate air. The juxtaposition of luxury and emptiness highlights the challenges and opportunities facing Madison Avenue as it navigates this period of transition.
In January of this year, The Jewish Voice reported that in a significant move that is set to reshape the landscape of luxury retail on New York’s iconic Fifth Avenue, Gucci’s parent company, Kering, acquired a prime retail property for a staggering $963 million. The acquisition took place in the heart of Manhattan, at the base of the Corning Glass Building, a 28-story office tower. This transaction marked the third major success for seller Jeff Sutton, who orchestrated the sale of both 720 Fifth Ave. and 724 Fifth to Prada for a combined total of $835 million just a month prior. These transactions were noted as the city’s largest combined investment-sale transactions in 2023.
At the time of the acquisition, SL Green chief investment officer Harrison Sitomer said, “This disposition represents another successful investment in our partnership with Jeff Sutton. The transaction is yet another example of how well-located assets continue to generate demand for global investors across cycles.”
The History of 660 Madison Ave
660 Madison Avenue, a landmark of New York City’s architectural and commercial history, stands as a testament to the city’s evolving landscape. Designed by the renowned architect Emery Roth in 1958, this 23-story building originally served as the Getty Building, named after billionaire John Paul Getty. Roth, known for his prolific work in New York City, designed the structure with the modernist aesthetic that characterized much of the mid-20th century. Situated in the prestigious Plaza District, near iconic sites such as Central Park, Trump Tower, and the Tramway Plaza, 660 Madison Avenue has seen its purpose and identity shift dramatically over the decades.
The building underwent a significant transformation in 1993 when it was renovated to become the flagship store of Barneys New York. This change marked a new chapter in the building’s history, as it transitioned from a corporate office to a high-end retail destination. The renovation was a collaborative effort between Peter Marino, an architect known for his luxurious and innovative retail designs, and Kohn Pedersen Fox, a leading architectural firm. Together, they reimagined the space into a 250,000-square-foot retail haven that would become synonymous with luxury shopping in New York City.
Barneys New York, a brand that had long been associated with cutting-edge fashion and style, made 660 Madison Avenue its flagship location. The store quickly became a cultural landmark, attracting fashion enthusiasts, celebrities, and industry insiders from around the world. For over two decades, Barneys at 660 Madison Avenue was a symbol of luxury and exclusivity, offering a carefully curated selection of designer clothing, accessories, and home goods. The store’s presence in the Plaza District elevated the area’s status as a premier shopping destination, rivaling other iconic retail corridors in the city.
Despite its storied history and cultural significance, Barneys New York faced significant financial challenges in the late 2010s. In 2019, the company filed for bankruptcy, marking the beginning of the end for the flagship store at 660 Madison Avenue. The following year, Barneys closed all its locations, leaving the iconic building vacant and raising questions about its future.
In 2021, a glimmer of hope emerged for 660 Madison Avenue when Art House, a cultural organization, took over the building. On November 4, 2021, Art House officially opened its doors with a benefit event, marking a new chapter in the building’s history. This move signaled a shift in the building’s identity, from a retail powerhouse to a cultural hub. Art House aimed to repurpose the space for a variety of cultural events, exhibitions, and gatherings, breathing new life into the once-vacant structure.
In 2022, 660 Madison Avenue hosted The Winter Show, an esteemed art, antiques, and design fair that had traditionally been held at the Park Avenue Armory for most of its 68-year history. The decision to relocate the fair to 660 Madison Avenue was significant, as it highlighted the building’s potential as a venue for high-profile cultural events. From April 1 to April 10, 2022, the building became a temporary home to some of the world’s finest art and antiques, drawing collectors, curators, and art enthusiasts to its storied halls.
The Landscape of Madison Avenue
As the landscape of Madison Avenue undergoes significant transformation, the changes are not only seen as inevitable but as opportunities to elevate this iconic stretch of luxury retail to new heights. Matthew Bauer, the president of the Madison Avenue Business Improvement District (BID), is taking a decidedly optimistic view of the future. According to the information provided in The Post report, he believes that the new developments, particularly the mixed-use projects at 625 and 655 Madison Avenue, will enhance the avenue’s allure, drawing in both new residents and an expanded customer base for the district’s diverse offerings.
Madison Avenue has always stood apart from other luxury retail destinations around the globe, largely due to its local customer base. Unlike other high-end shopping districts that rely heavily on tourists, Madison Avenue thrives on the patronage of its surrounding affluent neighborhoods. This distinction, Bauer suggests, is what will ensure the avenue’s continued success, even as it undergoes significant changes.
“These new buildings will not only bring new shopping and hospitality venues to the district,” Bauer explained to The Post. “They will bring residents who shall be clients for our stores, restaurants, spas, salons, and galleries,” he added. The influx of new residents, driven by the luxury residential components of these new developments, is expected to create a symbiotic relationship between the living spaces and the retail establishments that populate the lower floors of these buildings.
One of the most notable examples is 760 Madison Avenue, home to the nearly completed Giorgio Armani residences. This project exemplifies the trend of integrating luxury living spaces with premium retail, a formula that is quickly becoming the standard for new developments in this area. The Post also reported that further north, the Naftali Group is pursuing similar projects at 1045 and 1165 Madison Avenue, further cementing this trend along the entire stretch of the avenue.
While the ongoing construction and the closure of stores to make way for new developments might seem disruptive, there are those who see it as an opportunity. A retail broker, who chose to remain anonymous, highlighted the silver lining in the situation. “Any time stores close due to new development, it’s good business for other landlords — and for us. The stores have to find somewhere to go, and there are lots of places to go right now.”
This perspective underscores the dynamic nature of the real estate market on Madison Avenue. As old spaces are redeveloped, they create a ripple effect throughout the area, opening up opportunities for other landlords to attract displaced retailers. This constant churn, while challenging, also ensures that Madison Avenue remains vibrant and adaptable, capable of evolving with the times while maintaining its status as a premier luxury destination.
