A vacant six-parcel development site on Manhattan's Upper East Side, previously envisioned as the location for a skyscraper exceeding 1,000 feet, is now available for $360 million. The property, located at 143-161 E. 60th St., directly across from the Bloomingdale's flagship store, was last sold for $300 million in 2015. The current asking price reflects a $60 million increase for the roughly 20,000-square-foot site, which offers approximately 283,000 square feet of potential development. Unlike its previous sale, the existing buildings have been demolished, presenting developers with a cleared site.
The site's zoning permits both residential and commercial development and has previously been marketed as allowing for a tower with no height restriction. This opens the possibility for a developer to construct a supertall structure. However, the total investment for a high-end project is estimated to be around $1 billion, including the land acquisition and an estimated $500 million in construction costs. Listing broker Marlon Schwarcz noted that for ultra-luxury projects, the development cost can be up to three times the acquisition price. Alternatively, the site could be developed as affordable housing, with estimated construction costs ranging from $100 million to $300 million.
Major New York developers, including those involved in projects on nearby Billionaires' Row, are reportedly circling the property. Schwarcz indicated that offers began arriving about 30 days after the site was listed, with a deal potentially closing within 90 days. He stated that the interested parties are among the top 10 developers in the city.
A Decade of Unfulfilled Ambitions
In 2015, Chinese developer Kuafu Properties acquired the six-parcel assemblage for $300 million. Kuafu had ambitious plans for the site, commissioning architectural firms to create concepts for a supertall residential tower. Designs included a 62-story, 1,000-foot tower by Rogers Stirk Harbour + Partners and a concept from Kohn Pedersen Fox. Archilier Architecture proposed perhaps the most ambitious design, a roughly 1,240-foot tower that would have ranked among New York's tallest residential skyscrapers.
These plans did not materialize. The project became entangled in internal changes at Kuafu, with a report in 2016 indicating that a key executive was leaving to start his own venture, taking the East 60th Street site with him. The assemblage eventually came under Sumi Properties, controlled by that executive. Schwarcz highlighted that the substantial capital required for development, estimated to be up to three times the land acquisition cost for ultra-luxury projects, presents a significant challenge. "If you don’t have enough investors that want to invest alongside with you, everything is on your shoulders," Schwarcz said. "Regardless of how wealthy you are or how big you are, it’s very unlikely you’re going to accomplish this development."
Since its last sale, the site has been cleared of its former buildings, leaving it ready for a new development. The seller is not under pressure to sell, with Schwarcz stating, "It all comes down to numbers."