Chanel is exploring grabbing a piece of Extell Development's mixed-use site plans at 655 Madison Avenue.
The luxury brand is in talks to purchase retail space that would serve as the base for the luxury condo portion of the project, the Commercial Observer reported. While no deal is completed yet, sources told the outlet that Chanel might be willing to spend $450 million to own roughly 65,000 square feet, which would be located under the street level and on the higher floors of 655 Madison. That would value the segment of the property at roughly $7,000 per square foot.
Previously, Chanel was in negotiations to buy space at 660 Madison Avenue for about $600 million — but things went south due to a broker fee, the CO said.
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Now the move by the retailer comes amid Extell's big plans for 660 Madison, which has served as an office building in Midtown Manhattan. But after the developer purchased the asset in October for $160 million, the plans were to transform it into a 37-story residential asset spanning 193,000 square feet, according to a report from The Real Deal. Also, the conversion is slated to feature office, retail, and hotel space, along with 62 apartments. In moving forward with the plans, Extell recently purchased a trio of buildings in the area to demolish to create room for the project. Each of the properties stand roughly five stories, taking up roughly 28,000 square feet altogether.
Also, Extell continues to remain busy in Manhattan in general. In the last month alone, the developer has sold two residential properties in the city: 355 East 86th Street in Yorkville ($50 million), and 171 West 57th Street ($25 million).
Chanel operates clothing stores in the city at 15 East 57th Street, and 9 West 57th Street. On the 655 Madison negotiations, Paul Muratore of Insite Lxuury Consulting is representing the brand.
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