Barnett sells Sitt Carlton House retail for $277M — may be a record for Madison Avenue

TRD New York /
Jan.January 02, 2013 10:30 AM

Joseph Sitt’s Thor Equities has purchased from Extell a block-long retail space in The Former Helmsley Carlton House On Madison Avenue for $277 million  — one of the highest total prices ever paid for a retail property on the street, according to the Wall Street Journal. Thor beat out Vornado Realty Trust, which had placed a competing $280 million offer for the retail space, located at 680 Madison Avenue and 61st Street, between Barneys and Hermès.

Despite the 35,000-square-foot space’s coveted location, which features 367 feet of continuous, wrap-around frontage, Sitt is nevertheless taking a risk by paying one the largest sums ever recorded for a single retail property on Madison Avenue. That thoroughfare suffered after the recession — with rents falling to about $500 a square foot and nearly two-dozen retail spaces left vacant.

But Sitt remains confident.“Madison Avenue is so closely identified with luxury and class that the name itself has become synonymous with high-end, so much so that it is essential for any retailer calling itself a ‘luxury brand’ to have a presence on this thoroughfare,” Sitt said. “The opportunity to market this remarkable space to the best-of-the-best of luxury retail brands was simply too incredible a possibility to pass up.”

Gary Barnett’s Extell Development and Angelo, Gordon & Co. purchased the Carlton House for approximately $170 million in 2010 and are currently in the process of converting the upper floors to co-op apartments, with sales scheduled to launch next month. Barnett had planned to lease the retail space for nearly $1,500 per square foot, but decided to sell the space to Thor instead, possibly over uncertainty about the fiscal cliff and possibly as he begins amassing capital for his new West 57th Street and Broadway residential tower, which will be the largest in the U.S. [WSJ]Christopher Cameron


Related Articles

arrow_forward_ios
One Manhattan Square Extell Development CEO Gary Barnett (Credit: Curbed NY)

Extell lands $690M refinancing package for One Manhattan Square

Extell Development's Gary Barnett (Credit: Getty Images and iStock)

Chelsea residents paid Gary Barnett $11M to protect their views from a planned tower

Central Park Tower

Extell just went public with Central Park Tower listings

Brooklyn Point at 138 Willoughby Street and Extell Development’s Gary Barnett (Credit: Alistair Gardiner for The Real Deal)

And you get an incentive! Extell offers to pay carrying costs at Brooklyn’s tallest tower

93 North 9th Street in Williamsburg, Thor Equities' Joe Sitt, and a KAWS statue (Credit: Google Maps and Jim Bowen via Flickr)

Acclaimed artist KAWS pays $17M to expand Williamsburg studio

Raizy Haas and Gary Barnett (Credit: Getty Images, iStock)

One of Gary Barnett’s longtime deputies is leaving Extell

Thor Equities' Joe Sitt and 725 8th Avenue (Credit: Google Maps)

Thor facing foreclosure at Theater District building

Thor Equities' Joe Sitt and a closeup of 545 Madison Avenue (Credit: Google Maps)

Thor Equities loses 545 Madison Avenue

arrow_forward_ios