The corner parcel, 505 Fifth Ave., was formerly occupied by the Fifth Avenue Pavilion, a row of stalls that housed a group of 40 craft and souvenir vendors. LCOR began demolition on the two adjacent buildings last spring and in November the firm revealed its plans for the three parcels. At the time, LCOR was gung-ho on constructing a 275,000-sf class A office building on the site. Click here to read the original GlobeSt.com story.
LCOR is not saying what was behind its decision to switch gears and sell, though reports indicate that investment partner Lehman Brothers forced the issue. Lehman officials were unavailable for comment. Designed by Kohn Pedersen Fox Associates, the $160-million property was to have 23 floors of office space, three retail levels and a double-height penthouse. Insignia/ESG was to lease the offices and Cushman & Wakefield had the retail leasing assignment.
Kipp/Stawski, however, is said to be working on a far more ambitious project for the assemblage. The developer is reportedly planning "a brand new high-rise in excess of 400,000 sf," according to a source close to the deal.
It is unclear whether the developer would seek a variance or purchase air rights from nearby buildings to get the necessary approvals for such a large structure. And neither Community Board 5 district manager Kathy Kinsella nor New York City Planning Board officials claim any knowledge of the project. Kipp/Stawski officials had no comment on the plan.
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