03.29.17 | Real Estate Finance & Investment

Stellar, Imperium set to revamp Midtown South office

Stellar Management and Imperium Capital, which recently acquired a leasehold interest in 220 Fifth Avenue in New York, are planning a major capital improvement campaign for the Midtown South property. The duo paid about $800 per square foot for the property and has tapped NGKF to handle leasing for six vacant floors. Dino & Sons Realty Corp. was the seller.

The partners were attracted to the property due to its location and value-added potential. “The Sixth Avenue corporate corridor is no longer where people want to office,” said Matthew Lembo, a principal at Steller. “[This property] is evidence of a migration to prewar buildings in Midtown South.”

As part of its capital improvement program, the partners will renovate the lobby and update the building systems. The partnership is also completing custom pre-builds for turn-key office space. “We’re going to renovate the lobby to restore its pre-war charm and make it feel like it did when you walked in 100 years ago,” Lembo said. “Pre-builds for individual spaces are compelling for this size tenants.”

Each of the vacant floors has about 9,000 square feet of rentable space, with 54,000 square feet in total available. “From a physical perspective, the building is of the Gothic French renaissance style – its multiple friezes contain the images of both the iconic American bald eagle and the French fleur de lis,” Lembo said. “5th Avenue is a wide street, so light pours into the building providing views of Madison Square Park from every floor.”