McLaren Automotive Nears Lease for Retail Space at 550 Madison Avenue
Luxury sports car manufacturer McLaren Automotive is in advanced talks to lease the remaining retail space at 550 Madison Avenue. The move would complete the building's leasing after a multi-year redesign.
New York PostA dome of silence surrounds the negotiations. Brokers and representatives have declined to comment or have not responded to inquiries.
The 750,000-square-foot building's office space is nearly 100 percent leased. Current tenants include Chubb, Aquarian Group, private equity firm Clayton Dubilier & Rice, and Hermes. Rents exceed $200 per square foot on some floors. The only vacant retail space is a ground-floor corner at the south end, currently occupied by a temporary Museum of the City of New York exhibition.
A 15,000-square-foot north-end retail space houses a three-level hospitality complex that includes Korean steakhouse Cote and Bar Chimera.
America purchased the pink granite property, previously occupied by AT&T and later Sony, for $1.4 billion in 2016. The company then spent $300 million on a partial redesign approved by the Landmarks Preservation Commission. Earlier owners had abandoned plans to convert the 42-story tower into a hotel and residences, leaving it vacant.
Olayan America updated the lobby and office floors, enlarged retail windows, and converted a pedestrian arcade into a landscaped area with food kiosks under a 70-foot glass canopy.
Automotive is the road-car subsidiary of McLaren Group, a British organization with a history in Formula 1 and Grand Prix racing. The group traces its origins to champion driver Bruce McLaren, who died at age 32. McLaren would become the latest luxury automaker to open a Midtown showroom, following Aston Martin and Ferrari.
