TUESDAY, SEPTEMBER 17, 2013
Sutton is Broadway Bound
Retail magician Jeff Sutton is in contract to buy the three-building package at 530 Broadway from Joseph Sitt’s Thor Equities for $327 million, tucking yet another piece of Soho into his portfolio, we’ve learned.
Nearby, Sutton already owns No. 599; No. 560 with Jeff Gural of Newmark; and the redevelopment site at No. 529 with Bobby Cayre and Alex Adjmi’s Aurora Capital, where there is a proposal to develop a six-story historically sensitive 34,000-square-foot retail project. Sutton also owns 131-137 Spring with SL Green Realty Corp.
Sitt, the CEO of Thor Equities, is another area investor, with Nos. 444, 470, 494, 536 and 560 Broadway plus others on side streets.
Sitt bought the 530-536 Broadway trio at the corner of Spring Street for $190 million in 2007, and later bought back the debt at a discount, saving roughly $40 million, sources said.
This year, he signed Club Monaco to the retail, which also has Vince Camuto and Eastern Mountain Sports. Asking rents are pushing $800 for the retail and into the $60s for offices. That’s per foot, for those of you still paying attention. Soho retail rents are driving both purchases and redevelopment.
As we first told you in February, Sitt hired the Eastdil Secured investment gurus Douglas Harmon and Adam Spies to oversee this sale, which will close in a few months.
In Midtown, the duo is also marketing the black trophy tower at 450 Park Ave., the Financial Times reported, having been hired by horseracing and gambling czar Michael Tabor and his joint-venture local partner/operators, Somerset Partners.
The expectation is that the boutique building with the 36,700-square-foot Phillips du Pury auction house in its base will trade for roughly $600 million.
The 33-story building at the southwest corner of E. 57th Street will soon be nestled into the “L” of the opulent residential cloudscraper being developed by Harry Macklowe and CIM Group that wraps it from Park and E. 56th to 57th streets. When it opens, the luxury crossroads will host a green oasis with tables, seating and more retailers.