X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-An agreement is in place to sell a tiny lot at 42nd Street and Fifth Avenue as well as the two neighboring buildings directly to the north. Kipp/Stawski Group is buying the properties from regional developer LCOR for a price somewhere north of $40 million and reportedly plans to develop a property of at least 400,000 sf on the 13,500-sf site.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.