Macklowe Properties just secured a huge tenant for the base of their ritzy condo development at 432 Park Avenue.
Auction house Phillips is relocating its headquarters from down the street and will occupy 55,000 square feet of commercial space at the tower, the New York Times reported.
The auction house will have a double-height, column-free underground space of about 30,000 square feet with direct access from Park Avenue — plus executive office space with an entrance on East 57th Street. Its lease will also include the Park Avenue Cube, a white-glass modernist structure with about 5,000 square feet of space at the northwest corner of 56th Street and Park Avenue.
The commercial space at 432 Park is the subject of a recent court ruling in developer Harry Macklowe and Linda Macklowe’s divorce case. A judge ruled last week that Harry must pay his ex-wife half of the value of his commercial real estate holdings in order to keep his properties. At 432 Park specifically, Harry must pay Linda $7.85 million for her stake in the development’s commercial and retail component.
Meanwhile, Phillips, which also recently opened an office in Hong Kong, has been growing over the last few years. Its watch business captured 45 percent of the market since it was established less than three years ago. Its recent art sales include Pablo Picasso’s “La Dormeuse” for $57.8 million and Jean-Michel Basquiat’s “Flexible” for $45 million.
Phillips plans to host sales of 20th century and contemporary art — as well as photographs, watches and jewelry — at its 432 Park location starting next year.
Earlier this year, 432 Park crossed the $2 billion sales mark, according to its developers. In October, Alex von Furstenberg, the son of fashion designer Diane von Furstenberg and stepson of billionaire Barry Diller, bought a $10.75 million unit in the building.
Macklowe Properties has also been in negotiations to secure a big tenant at another condo development Downtown. In May, The Real Deal reported that the developer was in talks to lease 35,000 square feet at the base of One Wall Street to Target. [NYT] — Meenal Vamburkar