Brooks Brothers’ Madison Ave store could give way to Midtown East tower

Claudio Del Vecchio looking to sell 700K sf development site

New York /
Jan.January 21, 2021 04:08 PM
Claudio Del Vecchio has owned Brooks Brothers since 2001. (Getty)

Claudio Del Vecchio has owned Brooks Brothers since 2001. (Getty)

The retail apocalypse that sent one brand after another into bankruptcy last year could pave the way for a new skyscraper in Midtown East.

The Brooks Brothers store at 346 Madison Avenue is being offered up as a development site that could be transformed into a 41-story, 700,000-square-foot tower, sources familiar with the offering told The Real Deal.

The site is hitting the market after the iconic menswear brand — initially battered by changing trends, and dealt a final blow by the pandemic and the move to work-from-home — filed for bankruptcy last year. A partnership of Simon Property Group and Authentic Brands bought the 200-year-old company out of bankruptcy in August for $325 million and announced plans to close 75 of its 200 stores.

The brand’s flagship at the corner of Madison Avenue and East 44th Street, however, is still owned by Claudio Del Vecchio, the Italian billionaire who had owned Brooks Brothers since 2001.

Del Vecchio hired a JLL team of David Giancola, Andrew Scandalios and Bob Knakal to market the site for sale, sources said. It includes the Brooks Brothers store and an office building at 11 East 44th Street, which Del Vecchio bought in 2019 for $109 million. The pricing expectation wasn’t available, but if the site sold for $500 per square foot or more — a figure brokers said could be expected for the area — it could reach upwards of $350 million.

A representative for Del Vecchio could not be immediately reached, and a spokesperson for the brokers declined to comment.

The site could be among the early ones to take advantage of the city’s 2017 rezoning of Midtown East, designed to encourage the creation of 6.5 million square feet of new office space over the next two decades. Its current zoning allows for an office building or a hotel to rise on the site.

Other proposals for new Midtown East projects include Vornado Realty Trust and Rudin Management’s 1,450-foot tower at 350 Park Avenue and Harry Macklowe’s 1,500-foot tall office building at 14 East 52nd Street. JPMorgan Chase is already at work demolishing its headquarters at 270 Park Avenue to build a new 1,400-foot office tower in its place.





    Related Articles

    arrow_forward_ios
    Bluerock Residential CEO Robert Ramin Kamfar (Owler)
    NY-based multifamily REIT Bluerock explores sale
    NY-based multifamily REIT Bluerock explores sale
    Ardie Tavangarian (Photo by Kevin Scanlon)
    LA’s gentleman builder on developing for the ultra-wealthy
    LA’s gentleman builder on developing for the ultra-wealthy
    495 Hoffman Lane in Hauppauge and Beechwood Organization CEO Michael Dubb (Google Maps, Belmont Child Care)
    Luxury senior living could replace shuttered Hauppauge school
    Luxury senior living could replace shuttered Hauppauge school
    66 University Place (Google Maps)
    Grove Press building to be pulverized by luxury condo development
    Grove Press building to be pulverized by luxury condo development
    Two more rent law challenges tossed, landlords reserve hope in appeal
    Two more rent law challenges tossed, landlords rest hopes on appeal
    Two more rent law challenges tossed, landlords rest hopes on appeal
    Purchases across the country rose 0.7 percent in August, easily outpacing estimates by retail analysts. (iStock)
    Big month for retail sales bodes well for landlords
    Big month for retail sales bodes well for landlords
    A rendering of River Ring with Two Trees CEO Jed Walentas (BIG, Getty)
    CB1 approves Two Trees’ River Ring, keeping project on pace
    CB1 approves Two Trees’ River Ring, keeping project on pace
    250 Park Avenue and IWG CEO Mark Dixon (Google Maps, IWG)
    IWG to open 58K sf co-working site on Park Ave
    IWG to open 58K sf co-working site on Park Ave
    arrow_forward_ios

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

    Loading...