Located at 55 Street and Madison Avenue, the 17-story, 140,000 sf building is currently 100% vacant. Redevelopment of the property will basically replace everything but the basic steel structure, according to a company statement. The electrical and mechanical systems will be updated, new elevators placed in the building; a new glass wall façade will replace the current one. Architecture company Moed de Armas & Shannon is in charge of the redevelopment effort.

"We are transforming this structure into a fully contemporary class A office building, said David Sigman, LCOR senior vice president, in a statement. "A completely modernized 545 Madison Ave. will meet demand for boutique space in a prime Midtown location, an offering not readily available in this part of Manhattan."

Construction is expected to commence in early 2007. The first tenants are projected to be able to move into the space during the Spring of 2008. Jones Lang LaSalle's Peter Riguardi, Frank Doyle and Lisa Keill will be in charge of the building's leases.

Boutique office owners fill a specific niche in the Plaza District – a fact driving the market. Late last month, as reported by GlobeSt.com, Equity Office Properties signed the last of 15 leases filling its boutique office at 717 Fifth Ave. also near the former Plaza Hotel.