Chetrit to Sell Sony Building, Abandons Plans for Robert A.M. Stern-Designed Condos
In a very unexpected twist, The Real Deal has learned that the Chetrit Group is selling the Sony Building, scrapping its flashy plans to convert the office building’s upper floors to luxury condos designed by none other than Robert A.M. Stern. Olayan America, a division of the Saudi conglomerate Olayan Group, is in contract to purchase 550 Madison Avenue, partnering with European and Asian asset manager Chelsfield. According to the Post, they’ll pay between $1.4 and $1.5 billion, a profit of at least $300 million for Chetrit. In a statement, Olayan said they’ll lease space to “high-quality commercial tenants.”
A rendering of 550 Madison from the teaser site via Dbox
The news is especially surprising considering this past December a teaser site was launched for the project, where the developers announced their collaboration with Stern and released renderings and details. In addition to boasting a $150 million penthouse, the conversion was projecting a $1.8 billion sellout. European hotel company the Oetker Collection was to open their first U.S. outpost on the building’s lower floors, but it’s not yet clear if they’ll still be involved.
The deal is expected to close next month, and The Real Deal reports that “JLL’s Yoron Cohen is representing the buyer, while Eastdil Secured’s Doug Harmon is representing the seller.” We expect that more details will emerge in the near future.
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