Jeff Sutton sells 717 Fifth Ave to Gucci for $963M
Deal with French luxury group Kering follows $835M Prada sale
Jeff Sutton has pulled off another huge sale.
The retail titan and SL Green sold the retail portion of 715-717 Fifth Avenue for $963 million to Kering, the French luxury group that owns Gucci, Balenciaga and Alexander McQueen. The space totals 115,000 square feet.
The deal comes just weeks after Sutton sold 724 Fifth Avenue to Prada, a building that houses its flagship store, for $425 million, and neighboring 720 Fifth for $410 million. The combined sale marked one of the largest deals in New York City in 2023.
Eastdil Secured’s Will Silverman and Gary Phillips brokered the deal at 717 Fifth Avenue, where Sutton had run into some problems.
New York Life Insurance initiated a foreclosure on the retail property in 2022, alleging that the owner, an entity connected to Sutton’s Wharton Properties and SL Green, defaulted on a $300 million loan. Sutton fired back, accusing New York Life of killing a refinancing by tacking on a $10 million late fee. In December, a judge allowed New York Life to go forward with the foreclosure.
But Sutton’s sale puts that judgment behind him. The property sold for far more than the debt, allowing the owners to easily pay back the loan’s remaining balance.
Sutton, along with partners including the late retail magnate Stanley Chera, bought the space in the 26-story office building in 2004. Sutton subsequently bought out Chera and his partners at a valuation of $240 million. Later, SL Green acquired a stake. In 2012, Sutton bought out most of SL Green’s portion, leaving the latter with close to 11 percent, according to SEC filings.
Anbang bought the office portion of the tower — known as the Glass Corning Building — from Blackstone in 2015.
Sutton’s bets on Fifth Avenue years ago made him a billionaire. He has survived the ups and downs of the market, including the pandemic when international travel came to a halt.
Kering said in a statement that the acquisition follows its strategy of buying prime assets throughout the world. It recently bought properties on avenue Montaigne and rue de Castiglione in Paris.