Related Companies in Talks to Build Prada Tower in Manhattan

Less than two years after buying 720-724 Fifth Avenue from deal maestro Jeff Sutton for $835 million, fashion giant Prada is nearing an agreement with Related to build a skyscraper that could be connected to, and use amenities at, the adjacent Aman hotel and residences, sources tell Commercial Observer.

Earlier this year, Prada hired JLL to run a request for proposals process for a development partner. 

“They went to the who’s who of the development community,” said a source familiar with the process who wished to remain anonymous. “They wanted a development partner who would also use their balance sheet and have skin in the game.”

After Prada executives met with several developers in Italy, Related CEO Jeff Blau came out on top.

Sources say Blau is currently negotiating with the company to build a 225,000-square-foot tower with the Prada store at its base, the company’s offices above it, and then super luxury residences throughout the rest of the building that could sell for more than $10,000 per square foot.

Others that wanted in include Vornado’s Steve Roth, who built the wildly successful 220 Central Park South, and Marc Holliday’s SL Green, which has partnered with Sutton on other deals. The pair previously co-owned both the 1954-built 724 Fifth and the adjacent, 104-year-old 720 Fifth. SL Green will pivot to develop 346 Madison, according  to sources. 

Sutton had previously tapped Bjarke Ingels Group (BIG) to design a tower to replace the buildings, which sit on the northwest corner of West 56th Street, as first revealed by the New York Post in April 2024.

A beef with Prada in December 2019 over the timing of those redevelopment plans — as well as its hefty rent of $22 million a year — led to Prada finally buying the buildings at the end of 2023.

Sutton not only owned those buildings, but he also previously controlled the entire western Fifth Avenue blockfront between West 56th and West 57 streets, including both the Crown Building at 730 Fifth Avenue and the interconnected 3-9 West 56th Street which he bought with General Growth Properties (GGP), Michael Shvo and Vladislav Doronin’s OKO Group in 2014 for $1.75 billion.

A year later, after vacating the office tenants, Sutton and GGP sold the top 290,000 square feet of the Crown Building to Doronin and Shvo for $500 million so it could be turned into the luxurious Aman New York and Aman Residences. Shvo dropped out later over federal tax issues.

The retail space that Sutton and GGP retained in the base of the Crown Building has been occupied at various times by luxury brands Bulgari, Mikimoto, Ermenegildo Zegna and Chopard. Brookfield Property Partners took over as Sutton’s partner when it acquired GGP.

After a refinancing in 2018, Sutton sold the majority of the retail to Brookfield for a reported $779 million. The portion he retained, on West 56th Street, became known as the Annex. This Annex tax lot, which loops around 720-724 Fifth Avenue, was sold to Prada along with the two buildings in 2024. The Annex is also adjacent to the Aman’s residential and hotel lobbies to its west.      

The crafty Sutton also cut a deal with Doronin that could give occupiers of his future tower the rights to use the Aman name and amenities, but it is unclear if the new project will use that option as it likely comes with a price.

In July 2024, Doronin himself paid $135 million for the top four floors of the Aman Residences, while the last of the 22 sponsor units sold in January 2025 for $66 million, or a record $11,000 per square foot.

This is why penciling sale prices of $10,000 per square foot for new Billionaires’ Row residences is likely within everyone’s lofty expectations.

The new tower is unlikely to be designed by BIG, since every developer has their favorite starchitect, but it would still likely be sensitive to the gilded crown of the Aman and rise as a very tall, slender tower with single-floor residences. 

Prada would also have to relocate its store during the construction.

“They will need to look for really great swing space,” said retail broker Richard Skulnik of Ripco, who was unaware of the tower discussions.  

While Prada also has stores on the Upper East Side at 841 Madison Avenue and in SoHo at 575 Broadway, it won’t want to give up its sales in the neighborhood.

“There are opportunities in the area,” observed retail broker Steven Soutendijk of Cushman & Wakefield, who is marketing the 14,000-square-foot former Dior and Cartier space by the Apple cube at 767 Fifth Avenue. Soutendijk was also unaware of the discussions with Prada.

Prada may not have to look far, as there is a 61,536-square-foot space available in the former Henri Bendel store right across East 56 Street at 712 Fifth Avenue.

JLL, Prada, Related, Sutton, SL Green and Vornado declined comment or could not be reached.

This article has been updated to include new information on SL Green’s plans.