The Real Deal New York

Chetrit plans $1.8B condo offering at Sony Building

Developer to bring 96 pads to 550 Madison; total sellout a shade under One57

January 12, 2015 03:04PM
By E.B. Solomont

From left: Joseph Chetrit, David Bistricer and 550 Madison Avenue

From left: Joseph Chetrit, David Bistricer and 550 Madison Avenue

Joseph Chetrit’s Chetrit Group is bringing 96 condominiums to the former Sony Building at 550 Madison Avenue, for a total sellout of a whopping $1.8 billion, according to plans filed with the Attorney General’s office.

The Chetrit Group, along with investors, paid $1.1 billion for Sony’s former headquarters in early 2013, beating out several other suitors including Vornado Realty Trust, Macklowe Properties and Thor Equities. In June, the developers filed plans with the Attorney General to convert part of the 37-story tower, which is located between 55th and 56th Streets, into condos. The principal sponsors of the condo are listed as Meyer Chetrit and David Bistricer of Clipper Equity.

Two of the city’s most high-profile development projects, Extell Development’s One57 and Macklowe Properties 432 Park Avenue, had initial total sellouts of $2 billion and $2.4 billion respectively.

Representatives from Chetrit declined to comment. The developer aims to convert floors 14 through 33 of the tower, according to plans filed with the city’s Department of Buildings in October. SLCE Architects is the architect. The residential component would take up 434,778 square feet of the 648,366-square-foot building. Plans call for 12 apartments on the 14th floor and five apartments on floors 15 through 23. There will be four apartments on floors 24 through 29, three apartments on floors 34 and 35 and two apartments on floors 34 and 35. A floor-through penthouse is planned for the 36th floor.

  • Ron Edelstein

    Seems to me that in today’s super hot market this progect can easily achieve the sellout price anticipated and quite possibly more.

    • BH

      when all of the work on this building is completed and it’s available for sale….it may not be the market of today

      • Optimist

        Anything Is possible BH! It’s possible the prices will continue to rise too!

        • BH

          it’s definitely possible. I imagine though as other high value projects in the city begin to sell and some of this will inevitably happen simultaneously…..there will be issues getting people to buy. These are not a ground up construction in Tribeca. it will be interesting to see if the gamble pays off. Personally the city could have used the office space.

  • Frank

    I think that Chetrit way overpaid for the building, which is hemmed in on all sides, sits over a public space, and needs to be completely gutted. I do not believe that the condominiums will sell at a premium in a down market…..

  • Sam from Brooklyn

    Chetrit raped the Chelea Hotel. He has complete disregard for the tenants in his buildings.

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