Madison Equities developing project on East 92nd Street

Real Estate Weekly, Feb 19, 2003

Madison Equities is developing a new project with two buildings next to each other on a Manhattan parcel the firm assembled at 400-410 E. 92nd St., between First and York avenues. At 410 E. 92nd St., a mixed-use hotel/office development will combine the first branded hotel to be built on the Upper East Side with the largest new contiguous office space also on the Upper East Side, according to Cushman & Wakefield. The property at 400 E. 92nd will be a 32-story residential tower that Madison Equities will co-develop with the John Buck Company of Chicago.

Slated for groundbreaking in May 2003, 410 E. 92nd St. will rise 15 floors and contain 140,000 SF, with 40,000 SF of office space on floors one to four and a 226-room hotel on the upper stories. The residential building at 400 E. 92nd St. will span 190,000 SF and have 190 units.

The hotel will be operated under the Courtyard by Marriott brand, providing the first branded middle market hotel to be built on the Upper East Side, said Robert Gladstone, CEO of Madison Equities. Gladstone said the hotel is situated perfectly to serve guests who need to stay near one of the nine hospitals in the immediate area. The site also is within walking of distance of Museum Mile, close to the FDR Drive and Triborough Bridge, and 15 minutes from LaGuardia Airport.

"The Courtyard by Marriott will offer an attractive alternative in the area. We're close to nine major hospitals with more than 11,000 beds, the world's highest concentration, so we'll fill a substantial need for hotel space generated by the vast local medical community," he said.

Gladstone said the hotel will be family-friendly, with fully half the rooms designed as "double queens" offering two queen beds. For longer stays, 16 suites will be available, each with a separate living room, wet bar, refrigerator and microwave. Some suites will have a private terrace.

The hotel also will boast a 7,000-SF health spa with a 50-foot swimming pool, as well as whirlpool, sauna, steam and massage facilities for men and women and an extensive exercise room. The spa facilities also will serve the residential tower. A 3,000-SF space on the roof will be available for special events and parties. A restaurant on the ground floor will serve the neighborhood and provide breakfast for hotel guests.

The office space at 410 E. 92nd, spanning 40,000 SF, will be the largest piece of contiguous new office space on the Upper East Side, said Gary Greenspan of Cushman & Wakefield, representative for the property.

"In this neighborhood, office space is typically an afterthought, tucked into brownstones or as an adjunct to residential space," Greenspan said.

Gladstone said the office space will be operated completely independent of the hotel, offering a separate entrance, around-the-clock operation and separate mechanical systems. The space is available for purchase as a total unit. He said the firm is in discussion with potential medical-related tenants, as well as nonprofit organizations, which can realize significant tax advantages by buying rather than renting.

Anticipated completion date for the project is spring/summer 2004, Gladstone said.