Safra family finally begins 660 Madison’s office-to-resi conversion

Long-planned project means office tenants like Corcoran are getting the boot

New York /
Oct.October 21, 2020 12:52 PM
660 Madison Avenue (Photo via Jenel Real Estate)

660 Madison Avenue (Photo via Jenel Real Estate)

660 Madison Avenue’s offices are emptying out, though not for the reason you might expect.

The real estate family office for J. Safra Real Estate is moving forward with plans filed five years ago to convert that portion of the property into residential and hotel units.

Affected tenants include residential brokerage the Corcoran Group, private equity firm Lexington Partners, and venture capital and private equity firms led by Edgar Bronfman Jr., Waverly Capital and Accretive. Departures appear to be happening in a staggered fashion.

JSRE declined to comment. A spokesperson for Corcoran confirmed the brokerage was planning to relocate to a similar-sized office “just blocks away” in the spring.

Lexington announced in February it signed a 15-year lease for 48,000 square feet at Boston Properties’ 399 Park Avenue and would move out by the end of 2020. Questions directed to Accretive and Waverly were not answered.

The residential conversion of the upper portion of 660 Madison will start at the 10th floor and will also include hotel units, according to the most recent plans filed with the Department of Buildings.

The proposal now includes adding 15 floors to the 22-story building, with amenities such as bike storage and fitness center. Architect Joseph Pell Lombardi is leading the project.

The building’s lower floors are part of a retail condo owned by Ashkenazy Acquisition Corporation, and are currently occupied by Barneys New York. After the retailer filed Chapter 11 bankruptcy last year, the tenant and its landlord worked out a deal for the store to remain open until November. Ashkenazy is on the lookout for new tenants; earlier this year, the landlord was reported to be in talks with Italian food hall Eataly for some space.

As the future of office space hangs over many commercial landlords due to the pandemic, it may seem like an opportune time for a residential conversion, but the prospects for Manhattan’s luxury market are equally shaky with years’ worth of condos yet to be sold and many buildings competing for a limited pool of active buyers.

Construction has yet to begin at 660 Madison and the timeline for the project is unknown.





    Related Articles

    arrow_forward_ios
    “It took off like crazy”: How brokers use TikTok to rent apartments

    “It took off like crazy”: How brokers use TikTok to rent apartments

    “It took off like crazy”: How brokers use TikTok to rent apartments
    532 West 22nd Street and Kate Winslet (Google Maps; Getty)

    Kate Winslet letting go of Chelsea penthouse

    Kate Winslet letting go of Chelsea penthouse
    Renderings by Archimaera

    LIC will soon house the nation’s largest passive house office

    LIC will soon house the nation’s largest passive house office
    Mayor Bill de Blasio and the Gowanus Canal (Getty)

    Gowanus infrastructure plan aims to mute rezoning foes

    Gowanus infrastructure plan aims to mute rezoning foes
    Yue-Sai Kan and 6 Sutton Square (Getty; Google Maps)

    Sutton Square townhouse listed by “China’s Oprah” for $28M

    Sutton Square townhouse listed by “China’s Oprah” for $28M
    President Donald Trump (Getty)

    Realtor groups sue to block federal eviction ban

    Realtor groups sue to block federal eviction ban
    (iStock)

    Mortgage applications skyrocket in holiday week

    Mortgage applications skyrocket in holiday week
    (iStock)

    Manhattan market’s “steady upward slog” persists as suburbs and Brooklyn see gains

    Manhattan market’s “steady upward slog” persists as suburbs and Brooklyn see gains
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...