NEW YORK CITY – In a repositioning and redevelopment rare even for Manhattan real estate, 501 Madison Avenue is in the midst of a capital improvement plan, elevating the property among the most in-demand Midtown Manhattan addresses.
The owners took full possession of the 30-story, 185,000-square-foot art deco property in June when the ground lease expired after eighty-four years.
The extensive redevelopment plan calls for a new building entrance and lobby, designed by HLW Architects. Retail upgrades include new statuary satin bronze clad storefronts with Low-iron Starphire glass, designed by Design Republic. Additional building upgrades include: New elevator cabs and mechanicals, multi-tenant common areas, new windows, restrooms, as well as a new 400-ton cooling tower, upgraded electrical, and new building security and Class E systems, slated for completion in the first quarter of 2014.
17 new leases have been signed and several tenants have expanded within the building. Approximately 70,000 square feet of remaining office space is available.
Kevin R. Wang, of KRW Realty Advisors, LLC, represents the ownership group. The Colliers International Tri-State team of Chairman Robert L. Freedman, Vice Chairman Alex Jinishian, and Director Seth Hecht and Associate Timothy Pond, has been retained as the exclusive leasing agent and property manager.
“In 501 Madison Avenue we are transforming this classic, boutique officer tower into a meticulously restored and modernized Midtown gem,” Wang said. “We retained Colliers International because of their sophisticated market expertise and record of success in enhancing an asset’s value.”
“By renovating its physical presentation and operating systems we are re-introducing an asset befitting today’s marketplace,” Freedman said. “Rarely does such a remarkable Midtown asset become available for a multi-system reposition and redevelopment.”
With floor plates ranging from 1,826 to 8,938 square feet, 501 Madison Avenue, located at the Northeast corner at 52nd Street, is one of only a few Plaza District addresses that offer smaller to mid-sized space users a leveraged presence.
“The Plaza District’s leasing market contains many small, sophisticated tenants desiring best-in-class, well-located space that includes the updated infrastructure and accoutrements most modern buildings offer,” Jinishian said. “The building’s unique layout enhances each tenant’s visibility and cachet.”
Built in 1930, the 501 Madison Avenue also includes approximately 8,800 square feet of prime ground and second floor premises, providing a flagship retail opportunity along one of the most exclusive luxury goods corridors in the world. Below grade space can be made available as requested.
Furthermore, the repositioned building has re-entered the market at a perfect inflection point. Coupled with an improving economy, the capital improvements will enable 501 Madison Avenue to command increased rents, while also presenting current and future tenants with a value proposition when compared to other nearby office buildings — many of which are commanding triple digit rents.
Current tenants include Innisfree M&A Inc., World Jewish Congress Foundation, Oscar Heyman & Bros., and Sanders, Ortoli, Vaugh-Flam, Rosenstadt LLP, among others.
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