One of Manhattan’s most prominent retail sites may soon see major development. Related Companies, led by Jeff Blau, is reportedly close to an agreement to build a skyscraper at 720-724 Fifth Avenue, according to the Commercial Observer. The project would involve a 225,000-square-foot building that could connect to the neighboring Aman hotel and residences. The report notes that tenants in the new tower may have access to amenities in the adjacent hotel.
Prada, which purchased the properties from Jeff Sutton for more than $800 million, is expected to have a store at the base of the new building, with corporate offices above. The upper floors would be reserved for luxury residences, which could sell at prices exceeding $10,000 per square foot. During construction, Prada would need to relocate its operations.
Earlier this year, Prada hired JLL to help find a development partner. After meeting with several developers, including firms from Italy, Related was chosen over competitors such as Vornado Realty Trust and SL Green.
All parties involved—JLL, Prada, Related, Sutton, SL Green, and Vornado—either declined to comment or did not respond to requests for comment.
In late 2023, Prada agreed to buy 724 Fifth Avenue from Jeff Sutton’s Wharton Properties for $425 million, a deal that valued the 65,000-square-foot property at $6,538 per square foot. Shortly after, Prada’s $410 million purchase of the neighboring 720 Fifth Avenue was also announced. Both properties were previously owned by Sutton.
Prada has operated at 724 Fifth Avenue since 1997 under a long-term lease. Sutton refinanced the property several times between 2014 and 2023, and took full ownership in 2018 after buying out SL Green’s stake.
— Holden Walter-Warner
