Plaza Spaces Could Go on Sale Next Month
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Luxury retail space and condo units in the refurbished Plaza Hotel could go on sale as early as next month.
Brokers are billing the spaces at Central Park South as among the most high-end in the city. The hotel closed its doors in April for major renovations that will convert its 800 rooms and suites into a mixed-use building combining residential and commercial areas with a smaller, 350-room hotel.
The residential units could command prices between $3,000 and $6,000 a square foot, said Rosita Sarnoff, a senior vice president at Stribling and Associates, the company handling the sale and lease of the condos. Ms. Sarnoff estimated that the units would range from 800 to 6,000 square feet, meaning the largest condos could sell for well over $30 million.
Ms. Sarnoff said Stribling has already fielded thousands of initial inquiries for fewer than 200 condos.
“This is such a unique situation,” Ms. Sarnoff said. “There is only one Plaza.”
Condos at the Time Warner Center, a new construction at the other end of Central Park South, sold for about $2,000 a square foot in 2004, according to press reports at the time.
Both Stribling and Cushman & Wakefield, the real estate firm handling the commercial space, are awaiting final approval of their offering plans from the state attorney general’s office. Market sources familiar with Cushman & Wakefield’s strategy said the company was targeting retail companies and restaurants “at the highest end of luxury” for the commercial space on the ground and lower level of the hotel. They said interest in the space is high, and the firm is targeting European companies including Louis Vuitton and Giorgio Armani.
For the brokers and for Elad Properties, the company that bought the building for $675 million in 2004, the goal is to restore the Plaza to the reputation for elegance and grandeur it gained in the early to mid-20th century. In announcing its plans to reinvent the Plaza, Elad had said the hotel had been losing money, and portions of its interior were in disrepair. The $350 million renovations began in May after a battle between the company, labor advocates, and preservationists ended with a deal brokered by Mayor Bloomberg.
Under the arrangement, Elad agreed to keep 350 union jobs that would have been lost, and support landmark designations for the hotel’s most famous rooms, including the Grand Ballroom, the Oak Bar, the Oak Room, and the Palm Court. The company also said it would restore the Palm Court’s stained-glass dome, one of the hotel’s features when it opened in 1907 that was torn down in the 1940s.
The landmark designations were approved by the Landmarks Preservation Commission in July and are now before the City Council. A subcommittee hearing on the matter scheduled for yesterday was postponed until October 20. A request to change the property’s zoning status is also winding its way through city agencies.
A spokesman for Elad Properties, Lloyd Kaplan, said the renovations on the shuttered building are progressing on time. “We are still very early in the game,” Mr. Kaplan said, adding that workers were taking care to protect the spaces slated for landmark status.
The restored Plaza is scheduled to open in late 2006, in time to celebrate the 100th anniversary of the hotel. Preservation advocates who had lobbied against plans to renovate and alter the Plaza said they had mixed feelings about its future.
“To turn it into a hybrid I think is a travesty,” the president of the Historic Neighborhood Enhancement Alliance, Elizabeth Ashby, said.