Soloviev Group has long owned the office tower at 9 W. 57th St., famous for its pricey rents and list of major financial tenants including Apollo Global Management. Now, the property firm is planning another large project across the street.
Soloviev was behind the limited liability company that purchased 24 W. 57th St. for $67.2 million earlier this month. Soloviev already owned neighboring plots of land, meaning the company can expand its ambitions for that area.
The area south of Central Park between Fifth and Sixth avenues “has all of a sudden become a pretty hot environment for investment,” said Soloviev CEO Michael Hershman. “It’s become the focus of a number of developers and companies about doing something on this block. We’ve been entertaining a number of options for across the street.”
West 57th Street, known as Billionaires Row, is famous for its ritzy condo skyscrapers that have lured rich buyers. On that street, the tower called 9 West was developed by the late Sheldon Solow. His son, Stefan Soloviev, now runs the real estate empire.
One option for the new acquisition would be to demolish the current building and create a new large tower to be used as a company’s headquarters, given strong demand for top-tier office space in that area, Hershman said. Another possibility, which Hershman said would be more likely, is to construct a building that includes luxury condos, a boutique hotel and retail space.
He said the company expects to make a decision by the fourth quarter. Part of the interest in building luxury residences is the success of the nearby Crown Building, which has a hotel and condos, Hershman said.
“There’s still a great appetite for high-end residential and for branded, five-star hotels,” he said.
The new site would be located in a key corridor of Manhattan where developers have been pursuing well-situated plots in recent years. In October, Extell Development purchased a Madison Avenue office property with plans to build luxury housing and retail. Over on Fifth Avenue, major retailers were also snapping up buildings to obtain long-term space on a key shopping corridor.
