Harry Macklowe Buys Upper East Side Residential Building for $49M

Harry Macklowe’s Macklowe Properties, along with Scott Shnay’s SK Development, have acquired a residential property on Manhattan’s Upper East Side for $49 million.

The partnership purchased the residential portion of the 12-story mixed-use building at 809-811 Madison Avenue from Churchill Real Estate, according to broker Avison Young. The property has sat vacant for about three years.

Macklowe, a prolific developer in New York City, has plans to turn the 1920s-era building overlooking Central Park into “ultra-luxury condos,” according to The Real Deal, which first reported the news.

“We’re pleased to achieve a successful outcome for our client and the local community, which will see a historic property that has long sat vacant be repositioned for the future,” Avison Young’s James Nelson, who represented the seller, said in a statement.

“This prime Madison Avenue and East 68th Street corner asset offers a multitude of value-add opportunities in one of the world’s premier residential and retail shopping corridors,” Nelson added.

Avison Young’s Alexandra Marolda, Brent Glodowski and Eric Karmitz also brokered the deal for the seller, while the buyer had no broker.

Spokespeople for Macklowe, SK Development and Churchill did not immediately respond to requests for comment.

Churchill bought the Upper East Side building in 2019 for $55 million and sold off the property’s retail condo to the Jackson Group for $9 million last year, TRD reported.

It took Macklowe a few years to figure out plans for 809-811 Madison, which sits within the Upper East Side’s historic district and requires approval from the Landmarks Preservation Commission for any significant changes, according to TRD.

The commission ultimately approved Macklowe’s plans to use air rights to expand the building and convert it into single-floor apartments, plus a penthouse with a 1,500-square-foot terrace, the outlet reported.

The condos will be designed by Robert A.M. Stern and SLCE Architects, with apartments expected to sell for more than $20 million, according to TRD.

News of the deal comes after Macklowe recently dropped plans to develop a multifamily project in South Florida and sold a development site in suburban Miami to Related Group for $20 million — about 37 percent less than what he paid for the lot three years ago, as Commercial Observer previously reported.

Isabelle Durso can be reached at idurso@commercialobserver.com.