Sovereign Partners Buying 575 Fifth Ave For $380M

Cyrus and Darius Sakhai’s Sovereign Partners is closing in on another Midtown East office buy.

The brothers are in contract to buy the 40-story office building at 575 Fifth Avenue for around $380 million, The Real Deal has learned.

That’s about what MetLife paid in 2005, when it snapped up the Class A tower for $385 million. The insurance giant sold a 50 percent stake in the office portion to Beacon Capital Partners in 2015 for an undisclosed price.

The deal was struck on the sellers’ second attempt to bring the property to market. The partners put the 40-story building at 575 Fifth Avenue up for sale in the fall, eyeing a price north of $400.

That’s roughly the same price they had in mind when they put the property up for sale in the spring of 2022.

Back then, they were only offering the 500,000-square-foot office condominium, which they own 50-50. The deal now included the 40,000-square-foot retail condo at the base of the tower. It’s not entirely clear why Beacon and MetLife didn’t sell the property three years ago, but the office leasing market has vastly improved since then.

The deal was first reported by Commercial Observer.

The building at the corner of East 47th Street is 87 percent occupied and sits across the street from Extell Development’s 570 Fifth Avenue, where Gary Barnett is planning a 29-story office and retail project.

Representatives for Sovereign and Beacon did not immediately respond to requests for comment. MetLife declined to comment. An Eastdil team led by Gary Phillips and Will Silverman brokered the sale. The brokers declined to comment.

Sovereign Partners has been an active investor in the Midtown East market. The firm sealed the deal on a $273 million acquisition of 2 Grand Central Tower in December. In 2024, it bought 780 Third Avenue from Nuveen for $178 million. Earlier, Sovereign landed 100-104 Fifth Avenue from Clarion Partners for the heavily discounted price of $125 million.