Sovereign Partners, HudsonPoint Capital to Buy 575 Fifth Avenue for Roughly $385M
The 40-story Midtown office skyscraper had been marketed with a target price of at least $400 million
By Lois Weiss April 13, 2026 1:01 pm
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Real estate investment firms Sovereign Partners and HudsonPoint Capital are in contract to buy the 40-story Midtown office skyscraper at 575 Fifth Avenue from Beacon Capital Partners and MetLife, Commercial Observer has learned.
Will Silverman and Gary Phillips at Eastdil Secured had been marketing the 544,000-square-foot office building on the corner of East 47th Street and Fifth Avenue with a target price of at least $400 million.
The exact purchase price could not be learned, but it is believed to be closer to the $385 million that MetLife paid to developer Fred Wilpon’s Sterling Equities for the property in 2005, sources said.
The building was later divided into four condominium units in 2008. In 2015, MetLife sold a 50 percent stake to Beacon.
The property’s office portion — called Unit A — was reconfigured in 2015 to cover roughly 90 percent of the entire building, or around 504,000 square feet. Meanwhile, the retail units were also adjusted to account for roughly 40,000 square feet.
Eastdil — which was recently acquired by Savills in a $1.1 billion deal — was initially hired to sell the building in 2022 without the retail space, but to no success. That’s why the tower is now being sold along with the 40,000-square-foot retail space.
French sports fashion retailer Lacoste is currently open in 10,000 square feet at the building. According to a Lacoste executive’s LinkedIn post, the brand began negotiations in September 2022 and signed a lease in September 2023 for possession in July 2024. It finally opened its immersive flagship just one year ago on April 10, 2025.
Meanwhile, retailer Urban Outfitters recently signed a lease for 15,345 square feet for a new store at 575 Fifth Avenue, in a relocation from the nearby 521 Fifth Avenue. The deal was made possible after Sean Moran and Steven Soutendijk of Cushman & Wakefield, who represented the building, were able to incorporate a former L’Oreal cafeteria into the retail space. Urban Outfitters was represented by Tim Duffy of the McDevitt Company.
The building is leased by Cushman & Wakefield, with its website showing less than 25,000 square feet available in three to four smaller spaces. The building was 87 percent occupied as of September, The Real Deal reported at the time.
The building’s amenities include three conference rooms, a lounge and café, an on-site Starbucks, a central atrium, and a bike storage area that includes lockers and showers. There is even a beehive on the roof through a partnership with the Boston-based Best Bees.
It is yet unclear if the bees will have to swarm elsewhere or if Sovereign will continue the association with the honey makers.
Sovereign Partners is headed by brothers Darius and Cyrus Sakhai and includes William Gentile and Darius’s son Stephan. The brothers have been responsible for investing in 20 million square feet of office, multifamily and retail space across the U.S. They moved from England to America in the 1980s and later acquired properties in the Southeast during the savings & loan crisis while managing the family portfolio.
They founded Sovereign Partners in 2002. According to their website, they have interests in over 7 million square feet with active interest in 4 million square feet in acquisitions and dispositions since 2022.
Recent deals for Sovereign include the acquisition of 780 Third Avenue from Nuveen Real Estate for $178 million in June 2024, and the purchase of the 667,000-square-foot 2 Grand Central Tower from Rockwood Capital for $273 million in December. The company also bought Tower 56 at 126 East 56th Street for $113 million in 2023.
None of the parties involved in the deal at 575 Fifth Avenue immediately responded to CO’s requests for comment.
