Photo: Yuki Iwamura/Bloomberg/Getty Images
In late 2023, Prada spent $835 million to buy two Fifth Avenue buildings — 724 Fifth Avenue, where for decades it had been renting five floors for its flagship and office space — and 720, the 15-story building next door. Even for prime Fifth Avenue territory just around the corner from Billionaires’ Row, the price was considered steep, but then again, all of its luxury competitors were also paying top dollar to snap up real estate on Manhattan’s toniest retail strip — the Kering group (Gucci, Balenciaga) spent almost a billion dollars to buy the retail portion just across the street, at 715-717 Fifth Avenue. Prada was also facing a hefty rent increase and possibly a temporary displacement while its landlord, Jeff Sutton, renovated in the near future.
Now we finally know what Prada is planning to do with its two buildings: partner with Related on a new, 225,000-square-foot skyscraper at the site, with a store on the bottom and office space and luxury housing above. It may even share super-fancy amenities with the Aman hotel and residences next door, Commercial Observer reported. (While the details are still in the works, those Aman perks could include access to a jazz club, a 65-foot indoor heated pool lined by double daybeds and enclosed fireplaces, and a three-story spa with everything from massages and cold-plunge pools to full-body cryotherapy facilities.)
The two buildings may soon be replaced with a skyscraper anchored by a Prada store, with offices and luxury residences on top.
Photo: Avison Young
Prada started looking for development partners earlier this year, according to The Real Deal, taking meetings in Italy with Vornado and SL Green before ultimately deciding to go with Related. It’s likely that it will have to relocate during construction. It currently occupies about 15,500 square feet over the first four floors of the 12-story building at 724, with corporate offices on the fifth floor. (It also has a Madison Avenue store less than a mile uptown, so New Yorkers will still be able to shop nearby.)
The deal with Related is not yet final, but is said to be close. Other luxury brands have also started revealing plans for their Plaza District real estate. In September, LVMH filed plans with the city for a 25-story tower at 1 E. 57th Street, the site of its temporarily closed flagship (it also bought the building next door). No word of apartments there yet, but the first ten floors will be occupied by the flagship, which will have exhibition spaces, showroom suites, multiple restaurants, and a spa.