Wednesday, October 19, 2011

It's Official, $1Billion Tower To Rise On Park Avenue

The site of the former Drake Hotel, recently named the most valuable development lot in the city, will be home to a 1,420-foot tall residential tower, the tallest in the city.

According to the Wall Street Journal, CIM Group and Harry Macklowe plan to erect a slim condominium and retail complex designed by Uruguayan-born architect Rafael Vinoly  on the 440 Park Ave site. The tower will boast 128 units with 12-foot high ceilings.

The $1 billion project, at newly addressed 432 Park Avenue near 56th Street -- recently changed from 50 East 57th Street -- will included a 5,000-square-foot partial enclosed driveway, golf training facilities and private dining and screening rooms. Macklowe has no equity in the mega-project, but has remained involved in the decision making.

CIM is confident it will soon close on a $700 million construction loan, with the balance of construction costs self-financed. The private equity firm has $9.5 billion under management, and its Urban Real Estate Fund has an annual return of 7.4% compared to a 20% annual decline for similar funds.

By Peter Coyne