After dabbling in space (designing lunar spacesuits for NASA’s Artemis III mission), the Italian luxury fashion house Prada is shifting its focus back to Earth and its real estate with the acquisition of two buildings on New York’s Fifth Avenue. The Maison is expanding its New York presence with two staggering purchases: 720 Fifth Ave. for roughly $410 million and 724 Fifth Ave. for a whopping $425 million. Jeff Sutton’s Wharton Properties, located at 724 Fifth Avenue, has been the address of the Prada NYC flagship store.
With a combined value of $835 million, Prada’s investments have become the largest real estate purchases in New York this year. “The board believes that the property’s location offers high strategic value, characterized by increasing scarcity and long-term potential,” Prada said in a statement. “Furthermore, the area in the immediate vicinity of the property has recently seen an influx of significant investments that have further improved the residential, hospitality, and retail appeal.” This acquisition also ends Prada’s tense relationship with landlord Sutton, which was marked by leasing disputes and lawsuits over credit and deadline issues. The costly purchase ensures future retail prosperity and cements the status of its five-story flagship property, established in 1997.
Who is Jeff Sutton?
At 63 years old, this billionaire real estate developer is the founder of Wharton Properties. With a net worth of $2.3 billion, he has amassed his fortune by purchasing Manhattan storefronts and leasing them to high-profile brands such as Armani and Prada. A University of Pennsylvania graduate, Sutton owned 120 properties across New York City by 2013, predominantly in Brooklyn and Queens. His impressive roster of retail tenants with flagship stores includes Giorgio Armani ($200 million), Dolce & Gabbana ($250 million), Apple, Abercrombie & Fitch, Alexander McQueen, Givenchy, Bvlgari ($325 million), and more.
