He may be pushing 90, but Harry Macklowe is still mad for real estate.
The prolific developer just closed a deal to redevelop a 1920s-era apartment building on Madison Avenue into ultraluxury condos. Macklowe bought the limestone and brick building at 809 Madison on the Upper East Side’s “Gold Coast” from Churchill Real Estate Holdings for $49 million, sources told The Real Deal.
It’s a tricky project that’s befuddled potential developers for a few years. The building, at the corner of East 68th Street, sits within the Upper East Side historic district and any changes to it would require approval from the Landmarks Preservation Commission.
Macklowe was able to get the LPC on board with his plans, sources said, which include using air rights he acquired to expand the building and convert it into large, 4,000-square-foot single-floor apartments. There will also be an expansive penthouse with a 1,500-square-foot terrace.
He is partnering with Abe and Scott Shnay’s SK Development on the conversion, which will be designed by Robert A.M. Stern and SLCE Architects. Apartments are expected to sell for more than $20 million.
Representatives for Macklowe and Churchill could not be immediately reached for comment. An Avison Young team led by James Nelson and Brandon Polakoff brokered the deal.
Churchill bought the building for $55 million in 2019, and sold off the retail condo for $9 million last year.
Infinite Global Partners, led by former Silverstein Properties CEO Marty Burger, and Related Funds provided a construction loan. Sculptor Capital Management and Circle Property Partners are providing preferred equity, and a handful of family offices, small funds and ultra-high-net-worth investors are coming in as limited partners.
Michael Campbell of the Carlton Group arranged the financing.
Macklowe, who turned 88 in August, last kicked off a new Manhattan development project a decade ago when he bought One Wall Street for $585 million. The $2 billion conversion project has had its ups and downs, and after a period of slow sales has seen an increase in contracts.
Earlier this year, he sold a Midtown office building that had been part of his Tower Fifth development site, apparently relinquishing his long-held plan to develop a supertall office tower on the site.
Yet while things may be a bit slower on the development front, he certainly hasn’t been quiet. Macklowe’s grabbed headlines with a high-profile divorce in 2018 and a lengthy legal battle with CIM Group, his partner on 432 Park.
He sued the Israel Discount Bank of New York earlier this year, trying to stop the lender from foreclosing on his stakes in a pair of real estate investment trusts.
In Florida, he’s partnering with Jorge Pérez’s Related Group to build a two-tower condo project in North Bay Village.
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