LVMH files to demolish flagship Fifth Avenue store ahead of new tower

Retail giant LVMH filed plans to demolish its flagship store at 1 East 57th Street in the Plaza District, Manhattan, to clear the site for a previously announced tower. The retailer has not filed plans for the new building, but did file plans in March 2024 to demolish the adjacent building at 743 Fifth Avenue.

The new demolition plans were filed under job number M01053745, dated June 6, 2024. The plans calls for the demolition of the 226-foot-tall, 91,060-square-foot building.

The New York Post reported that LVMH signed a seven-year lease at the Trump Organization’s 6 East 57th Street, to maintain a presence while the new building is constructed.

The property

The retail building in Midtown East has 91,060 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 62 feet and is 100 feet deep with a total lot size of 6,224 square feet. The zoning is C5-3 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $48.8 million.

Prior sales and revenue

The 91,060-square-foot property generated revenue of $8.7 million or $95 per square foot, according to the most recent income and expense figures.

Violations and lawsuits

According to city public data, the property has received $4,525 in OATH penalties in the last year.

There were no lawsuits or bankruptcies filed against the property for the past 24 months.

The neighborhood

In Midtown East, The majority, or 81 percent of the 62.6 million square feet of commercial built space are office buildings, with hotel buildings next occupying 7 percent of the space. In sales, Midtown East has the 2nd highest sale turnover among other neighborhoods in the city with $3.6 billion in sales volume in the last two years. For development, Midtown East is the 2nd most active neighborhood among other neighborhoods. It had 16.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 27 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 19 commercial properties representing 970,594 square feet of the 1,921,836 square feet. The largest owner is Buchbinder & Warren, followed by Paramount Group and then Richard Gordon. There are no active new building construction projects on this tax block.

The surrounding

Within a 400-foot radius of 741 5 Avenue, PincusCo identified 17 commercial real estate items of interests occurred over the past 24 months. Of those 17 items, 16 were sales above $5 million totaling $1.3 billion. The most recent of the 16 was Prada which bought one condo unit in the 0-square-foot, 109-unit mixed-use building (RM) on 730 5th Avenue for $12.6 million from Brookfield Properties and Wharton Properties on April 25, 2024. One of those 17 items was a loan which Solil Management borrowed $18 million from State Farm Realty Mortgage secured by the 76,656-square-foot, 88-unit office building (O6) on 592 Madison Avenue on June 6, 2023.

Direct link to the property’s ACRIS page and link to DOB NOW portal.