NEW YORK | 574 5th Ave (Extell) | 567 FT | 32 FLOORS

[Crawford]

Yeah, IMO urban IKEAs make a lot of sense, but I just find the specific location a bit odd. Brits and Brazilians headed to NYC to shop for - cheap, disassembled furniture?

[NYguy]

Originally Posted by Crawford

The development rights have now changed, as it's now a full-block site. I assume, if they need zoning changes, they'll have to resubmit under new assumptions.

I don’t know that Extell officially gained that corner lot. But if so, they could still proceed as-of-right. I don’t think they intend to go through a lengthy approvals process, but to build now, with what they have.

Gary Barnett, Founder & Chairman, Extell Development Company: "We have been working on assembling this project for almost two decades and Ingka Investments' substantial commitment allows us to move forward with the construction and leasing…

https://commercialobserver.com/2024/...-fifth-avenue/

Korean financial services firm Meritz Securities and Korean asset manager IGIS provided financing for the development, according to Extell and Ingka, which did not provide more information about the financing.

[ChiND]

So is 1m sf the amount that Extell can build as of right?

[Crawford]

IKEA is taking a 1/3 stake in the project, and the lender is a South Korean outfit.

I hope Extell delivers a high quality development worthy of the location.

[streetscaper]

Office tower looks good in the renderings but an IKEA on fifth ave looks tacky to me lol

[ChiND]

Maybe Ikea will move its US HQ there.

[NYguy]

Originally Posted by ChiND

So is 1m sf the amount that Extell can build as of right?

It’s in the chart above. Including mechanical space, it should be close to 1 msf.

[ChiND]

Originally Posted by NYguy

It’s in the chart above. Including mechanical space, it should be close to 1 msf.

Thanks. I did not like the original office design, but this slightly modified version (with the extra setback and lower height) looks much better. How tall do you think it is? 700’?

This thread is nine years old. I remember the final days of the crappy NYC souvenir shop and art gallery in that dumpy mock Tudor building. I’m glad that this is finally going to rise, and I hope (and believe) that this and 520 will fuel redevelopment of the crap in the 40s. The new pedestrianzation plan will really precipitate redevelopment.

[NYguy]

Another look at the project as proposed which Extell was close to beginning approvals on...

[KingNYC]

This apparent new design reminds me of 300 Madison Avenue nearby.

That building is 575 feet tall and 1.2 million sq feet.

It also evokes Extell's only other office building- the International Gem Tower, which stands 500 feet tall and has 700K sq feet.

However, this tower is more attractive than both of those.

This tower is also in a super prime location from a view and traffic standpoint.

It will add a lot of beef to a relatively low rise part of Midtown.

[NYguy]

https://www.curbed.com/article/ikea-...ing-point.html

Ikea to Open Store in Midtown Mänhättän (Yet Again)





By Christopher Bonanos
July 2, 2024

Fifth Avenue’s prime retail strip is doing just fine, and given the state of many New York streetscapes, that itself is news. Post-pandemic recovery in what might be called the Tiffany’s district has been real, boosted by ultraexpensive residential development, like the conversion of the Crown Building to the Aman.

At 570 Fifth, on the corner of West 46th Street, a new tower will soon rise to replace an array of dowdy prewar holdouts. It’ll mostly be a million square feet of offices, but the 80,000-square-foot ground-floor retail space will be none other than Ikea. Per Bloomberg News, the Dutch holding company behind most of Ikea’s franchised stores (known as Ingka after the company’s problematic Swedish founder) will own a third of the tower plus the Ikea space, and the New York developer Extell will own the rest. It’ll open in 2028.

Theoretically, it makes sense for Ikea to make some of its retail stores, like the Billy bookcase, smaller. (The stores in Red Hook and Elizabeth are north of 350,000 square feet; this one, of course, will be 80,000.) People like Ikea for everyday products as well as big decennial purchases. One can certainly imagine dropping in to buy, say, a colander or a desk lamp between schleps out to Red Hook for a crib or a sofa. It’s worked for Ikea in other cities and makes extra sense here because comparatively few New Yorkers drive. The store’s being called a Meeting Point, presumably because you can make an appointment there to talk through your new kitchen.

[Zapatan]

If the 858 foot version was ~1.5msf the 1msf version is probably around 5-600 feet.

I like the design but it seems like kind of a waste in Midtown. I guess it's still better than nothing in this economy.

[ChiND]

I don’t care if it’s shorter. It looks much better this way. Anyway, NY has a lot of massive towers in the pipeline.

[Busy Bee]

Originally Posted by Zapatan

I guess it's still better than nothing in this economy.

The economy is great. The office market has been turned on its head as you know and only the highest quality space will be brought to market, and all of it will require full pre-leasing too get the project out of the ground. No more having 25% of a 1.5 mil sf be commited to being enough for financing. Developers are looking for one or two tenants to take the whole thing. In that climate sometimes a developer thinks its wiser to pursue a smaller building if it means it can get underway sooner and minimize risk of a project being adversely affected by an economic downturn or other financial shakyness.

The best case scenario would be a mixed use supertall. Why they are forfeiting potentially a hundred ultra luxury Fifth Ave addresses is beyond me.

[Zapatan]

Originally Posted by Busy Bee

The economy is great. The office market has been turned on its head as you know and only the highest quality space will be brought to market, and all of it will require full pre-leasing too get the project out of the ground.

Right, I meant the loan environment etc. obviously the stock market is doing great. Office market not so much.

The best case scenario would be a mixed use supertall. Why they are forfeiting potentially a hundred ultra luxury Fifth Ave addresses is beyond me.

They indeed should, like I said, it seems like a waste of a Fifth Ave site.

[NYguy]

Originally Posted by Busy Bee

sometimes a developer thinks its wiser to pursue a smaller building if it means it can get underway sooner and minimize risk of a project being adversely affected by an economic downturn or other financial shakyness.

Which is what we could be seeing with the 15 Penn proposal.

The best case scenario would be a mixed use supertall. Why they are forfeiting potentially a hundred ultra luxury Fifth Ave addresses is beyond me.

I don't believe there's residential allowed on this site at all, it was one of the things that needed approval. In a time where we see other commercial districts in Manhattan being rezoned to include more housing, this area could use some of that too. But Extell, as we know, always takes the opportunity where available to build into the sky. Given the time and effort it took for the assemblage (possibly longer than CPT) its surprising they wouldn't just hold on to the site until better conditions. On the other hand, their new partner in the development (meaning cash) wants to build now. So, what we will see is a building rising on spec, and you do have to limit something like that. Another tower of similar size (though taller) is 343 Madison. They will not build on spec.

BTW, the Rolex tower up the street is under construction, so I don't know why Extell says this would be the first office tower rising since the pandemic.

[NYguy]

576 Fifth coming down quickly....still no word on assemblage...






JULY 4, 2024

[ChiND]

NY Guy, do you have any idea as to how tall this tower will be? 500’? 650’?

I don’t really care, as I much prefer this to the 800/850’ version that was shown last year. I’m curious, nonetheless.

[NYguy]

Originally Posted by ChiND

NY Guy, do you have any idea as to how tall this tower will be? 500’? 650’?

Don't know. They haven't really given a lot of details about it.

This graphic suggests 24 stories.

[ChiND]

Thanks. It looks taller than 24 floors. I was thinking 35-40.