One of Manhattan’s prominent real estate sites is set for a major development, as Related Companies is close to reaching a deal to build a skyscraper at 720-724 Fifth Avenue, according to a report from the Commercial Observer. The site, which Prada purchased from Jeff Sutton for over $800 million, is being eyed for a 225,000-square-foot building.
The proposed development may connect to the adjacent Aman hotel and residences, with tenants potentially gaining access to amenities in the neighboring property. Prada is expected to have retail space at the base of the new building, with corporate offices above and luxury residences occupying the upper floors. These residences could command prices exceeding $10,000 per square foot. During construction, Prada would need to temporarily relocate.
Earlier this year, Prada hired JLL to help find a development partner. After meetings with various developers, including those from Italy, Related Companies was selected over other contenders such as Vornado Realty Trust and SL Green.
Representatives for JLL, Prada, Related Companies, Jeff Sutton, SL Green, and Vornado declined to comment or did not respond to inquiries.
In late 2023, Prada agreed to buy 724 Fifth Avenue for $425 million from Jeff Sutton’s Wharton Properties, paying about $6,538 per square foot for the 65,000-square-foot property. Shortly after, Prada’s $410 million acquisition of the neighboring 720 Fifth Avenue was disclosed. Both properties were previously owned by Sutton.
Prada began its presence at 724 Fifth Avenue with a long-term lease starting in 1997. Sutton refinanced 724 Fifth for $235 million on three occasions—in 2014, 2017, and 2021—and for $260 million in January 2023. Sutton and SL Green originally bought the building for $200 million in 2012. Sutton’s company gained full ownership by purchasing SL Green’s stake in 2018.
