Prada Bought a Second Midtown Office Building From Jeff Sutton for $400M
Aside from the previously reported 724 Fifth Avenue sale, the Italian fashion house picked up neighboring 720 Fifth Avenue.
By Mark Hallum January 5, 2024 3:07 pm
reprints
Like the fictitious Miranda Priestly, Prada gave its December deal with Jeff Sutton two nods (maybe even a smile).
Prada not only bought Wharton Properties’ 724 Fifth Avenue for $425 million, but the fashion brand also purchased 720 Fifth Avenue for about $397.3 million in a deal that took place around the same time, according to property records made public this week. Crain’s New York Business first reported the transaction.
The total price for 720 Fifth Avenue, plus an annex next door on East 56th Street, brought the total for the building to $410 million, according to a source with knowledge of the deal.
The sale of both buildings were wrapped into a single deal, according to a source with knowledge of the deal. The total for both buildings was $835 million, and it’s unclear what Prada plans to do with 720 Fifth.
Will Silverman and Gary Phillips of Eastdil Secured represented Wharton in the deal to offload both properties, but declined to comment. Sutton also declined to comment while Prada did not respond to a request for comment.
Wharton previously owned the 15-story 720 Fifth and the neighboring 12-story office and retail 724 Fifth with SL Green Realty. The pair bought 720 Fifth for $153 million in 2006 then dropped $223 million for 724 Fifth in 2012, as Commercial Observer previously reported.
In 2018, Sutton became the sole owner in a deal that paid $85.5 million for SL Green’s 50 percent stake in the venture.
Prada has been at 724 Fifth Avenue since 1997 when it leased 22,000 square feet for its four-story flagship location.
Sutton and Prada have been in and out of court in recent years over concerns that renovations to the building could be hurting the retailer’s business. Ultimately, Sutton’s firm only had to pay Prada’s legal fees.
Part of the reason Prada bought the building was to make a bet on the neighborhood since “the area in the immediate vicinity of the property has recently seen an influx of significant investments that have further improved the residential, hospitality and retail appeal,” Prada said in a statement about the 724 Fifth sale.
Mark Hallum can be reached at mhallum@commercialobserver.com.
