NYC’s most fashionable shopping corridor is getting a mysterious makeover

Uptown Madison Avenue, the city’s main luxury shopping corridor, faces instant change on the gilded blocks where East Midtown meets the Upper East Side.

Two large retail office buildings are being torn down for new mixed-use projects about which little is known. Meanwhile, wealthy fashionistas and even wealthier real estate investors wonder what will become of the former Barneys building, which has sat empty for four years.

We first reported in July that Related Cos. will knock down 625 Madison between East 58th and 59th streets for a super-tall mixed-use tower that could rise to more than 1,200 feet. Jeff Blau of Related told us it will take nine months to demolish the structure and another for a skyscraper with luxury apartments, shops and possibly a hotel. Scaffolding now covers the entire property.

Now comes word via Crains that demo plans have also been filed for the 24-story 655 Madison between East 60th and 61st streets. The owners, a joint venture that includes Jamestown and Williams Equity, plan “a mix of retail, hospitality and residential.” , Williams co-principal Michael T. Cohen previously told Commercial Observer.

As at 625 Madison, the retail tenants have left — most notably Marc Jacobs, which had the large south corner. Although a sign promises the designer is moving to a new Fifth Avenue location, no Fifth Avenue leases have been announced. (As we reported, negotiations at 645 Fifth went nowhere.)

Adding to the uncertainty about the future, the elegant but vacant 10-story former Barneys at 660 Madison — across the street from 655 Madison — continues to baffle real estate insiders and, according to the Real Deal, frustrate principal owner Ben’s investors Ashkenazy.

Ashkenazy told The Real Deal, “I chose to keep it empty for one reason, because a major retailer is going to buy it” for $1 billion.

Although a large Valentino boutique recently moved into the former Calvin Klein space next door at 654 Madison, much of the block between East 60th and 61st streets has a forlorn air.

Madison Avenue Business Improvement District President Matthew Bauer took a long, optimistic view.

“What makes Madison Avenue stand out from other luxury retail destinations around the world is that the majority of the customer base is very local,” Bauer said.

“These new buildings will not only bring new commercial and hospitality venues to the district, but will bring residents who will be patrons of our shops, restaurants, spas, salons and galleries.”

He noted that since both 625 and the new 655 Madison “already likely have a large residential component,” they “will follow recent precedents of new construction in Madison with tiered retail high rise on the lower floors and luxury apartments above”.

He mentioned 760 Madison, the nearly completed Giorgio Armani residences, and now projects by the Naftali Group further north at 1045 and 1165 Madison.

A retail broker, who did not want to be named, saw a bright side to another fortune.

“Whenever stores close because of new development, it’s good business for the other owners — and for us. Stores have to find somewhere to go, and there are plenty of places to go now.”