1049 5th Avenue
Encyclopedia
1049 5th Avenue is a 23-floor luxury condominium apartment building located in the Upper East Side
, New York City
. Built in 1928 as the Adams Hotel, the building underwent extensive renovation in its conversion to residential condominiums during the years 1990-1993. When the apartments were first offered for sale in 1991, they were the highest-priced residential apartments ever offered for sale in New York City. Their sale prices set city records in 1993 and 1994.
Functionalism
, the appearance of the building has never been considered particularly distinguished.
The structure is situated on the Upper East Side
, in the area of the city known as Museum Mile
. It occupies the block bounded by Madison and Fifth Avenues and 86th
and 85th
Streets. It is adjacent to and relates architecturally with the former Croyden Hotel, now rental apartments, that occupies the remainder of the block to Madison Avenue.
In 1990, 1049 5th Avenue was purchased by Jack C. Heller of Heller Macaulay Equities, Inc. and converted into 54 (now 45) luxury condominiums averaging 3000 square feet (278.7 m²) each.
, offset from Fifth Avenue by the William Starr Miller House
, which abuts its western facade.
When originally constructed, the address of the building was 2 East 86th Street. During its renovation, the building owners applied to the Manhattan Borough President
's office for an address change, citing the fact that all floors above the seventh provide an unobstructed view of Central Park
. This was for marketing purposes, due to the additional value that accrues to real estate with a Fifth Avenue address. Such changes are unusual but not unheard of, and are granted if deemed justified.
The address change was approved and implemented in the spring of 1991.
, the condominiums were offered for sale starting in 1991 at $1,200 to $1,500 per square-foot, making them the highest-priced residential apartments ever offered for sale in New York City.
, who then began renovations on the building and started purchasing the apartments of long-term tenants. Later, Guterman suffered substantial financial setbacks due to the Tax Reform Act of 1986
, which significantly reduced the value of his real estate holdings, and also the 1987 stock market crash
. Renovations to the building were halted, and Guterman was forced to declare bankruptcy. Despite an intensive legal struggle by Guterman to retain ownership of the building, it was placed in receivership
and ordered sold.
. Heller's additional bid failed to purchase the adjoining former William Starr Miller House
, a Louis XIII
/Beaux-Arts structure located on the corner of Fifth Avenue.
Heller, a 1978 Boston University
graduate, was heir to the capital of the Foreston Group, a family-owned conglomerate founded in 1906 that was the largest independent coal mining and distribution operation in the US, then valued at $150 million. In 1985, reviving the remnants of his family's real estate subdivision, Heller began developing residential real estate. During the years 1985-1990, he built some 1,500 apartments, including Le Chambord, a 23-story luxury condominium building at 350 East 72nd Street
. About architecture, Heller expressed admiration of the iconic apartment houses of Rosario Candela
. He founded Heller Macaulay Equities in 1989 with partner Duncan Macaulay. Of 1049 5th Avenue, Heller said, "Never again in my lifetime do I expect to see the chance to build a great building on or within a few steps of Fifth Avenue".
Architects and appointed by the up-market interior design firm Cullman & Kravis, the apartments were accommodated with extensive luxury features, including separate heating and cooling for each room, 12 inches (304.8 mm) concrete floors, large picture windows, and a butler's pantry in most apartments. Only four of the resulting apartments have fewer than two bedrooms.
All apartments on the west side of the building above the seventh floor overlook Central Park
and the Reservoir
, over the top of the adjacent William Starr Miller House
. This is a highly desirable feature for a condominium in the city and one which fetches a substantial premium. This side of the structure was extensively reworked, with large windows and balconies on some apartments.
Other luxury features of the property include refrigerator storage for deliveries, storage lockers, and a bicycle room, but no pool or garage. All of the apartments have their own laundry facilities and some have fireplaces. In addition, the building employs elevator operators. Upscale grocer Dean & DeLuca
maintains a storefront on the northwest corner of Madison Avenue and 85th Street.
Renovation began after purchase of the building in 1990 and was completed in 1993. In addition to the condominiums, staff apartments were offered for sale on a first-come-first-served basis for $100,000 each.
, was struggling, and several recently constructed residential high-rises sat empty. Prices for New York condominiums had fallen at least 25 percent since 1989, and plummeted a whopping 4.6 percent just in the second quarter of 1991. Worse, the malaise extended well beyond New York. The world was in the midst of a severe economic downturn, the recession of 1991.
About Heller's ultra-luxury condominium development at 1049 5th Avenue, New York Magazine
asked, was the project "Folly on the 'Fifth'?" Real estate expert James Austrian, of Austrian, Roth and Partners, was scathing: "I think Jack Heller is crazy, but I wish him well".
Amidst these perilous economic circumstances and skeptical criticism from industry experts, Heller appeared supremely confident, almost ebullient. He expressed confidence that his luxury project would command high prices despite the general depression of real estate values, and he predicted that he would not be able to live in the building because every apartment would be sold.
By 1993, Heller had sold sixteen of the apartments for prices ranging from $800 to $950 per square foot. That year he recorded the two highest condominium sale prices in Manhattan: $3.5 million and $3.8 million. On June 22, 1994, Entrepreneur Magazine reported the spectacular sale of a 4661 square feet (433 m²) penthouse for $5.5 million, or $1,100 per square-foot, the record for that year. The apartment featured 4 bedrooms, 6.5 marble baths, a living room with a wood-burning fireplace, media room, library, formal dining room, granite kitchen, and a maid's room. It also featured 4 terraces and 360-degree views.
Heller took the opportunity of this sale to again express confidence in his project and New York real estate in general, saying that it proved "that the condominium market in New York City is again thriving and getting stronger every day."
As a result of his high-profile success with 1049 5th Avenue, Heller was named one of the "40 Under 40" business luminaries by Crain's New York Business in 1993.
began his national broadcasting career in Manhattan in 1988. In 1992, he earned $3.5 million, and he was on his way to making a fortune. Limbaugh purchased a 10-room penthouse at 1049 5th Avenue, with a fireplace and four terraces, for "just under" $5 million in 1994.
After moving his broadcast operation to Palm Beach, Florida
in the late 1990s, Limbaugh railed on his program about high state income tax rates in New York
. In the spring of 2009, New York State adopted a temporary income tax surcharge on wealthy individuals, at which time Limbaugh threatened to sell his condominium and leave the city forever. A transcript of the show on Limbaugh's website was titled, "El Rushbo to New York: Drop Dead." New York Governor David Paterson
made light of Limbaugh's criticism, saying, “If I knew that would be the result, I would’ve thought about the taxes earlier.”
Limbaugh made good on his promise to sell his apartment, and the condominium went into contract on July 8, 2010, for "a bit under" $12.95 million.
Upper East Side
The Upper East Side is a neighborhood in the borough of Manhattan in New York City, between Central Park and the East River. The Upper East Side lies within an area bounded by 59th Street to 96th Street, and the East River to Fifth Avenue-Central Park...
, New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
. Built in 1928 as the Adams Hotel, the building underwent extensive renovation in its conversion to residential condominiums during the years 1990-1993. When the apartments were first offered for sale in 1991, they were the highest-priced residential apartments ever offered for sale in New York City. Their sale prices set city records in 1993 and 1994.
History
1049 5th Avenue was built in 1928 as the Adams Hotel, a beige-brick structure comprising 23 stories. Built in the style of pre-warPre-war
The term pre-war or prewar is usually applied to the most recent or significant war in a culture's history.Antebellum is most often used to denote the period before the American Civil War while pre-war typically refers to the period before WWII.In real estate the term refers to buildings from the...
Functionalism
Functionalism (architecture)
Functionalism, in architecture, is the principle that architects should design a building based on the purpose of that building. This statement is less self-evident than it first appears, and is a matter of confusion and controversy within the profession, particularly in regard to modern...
, the appearance of the building has never been considered particularly distinguished.
The structure is situated on the Upper East Side
Upper East Side
The Upper East Side is a neighborhood in the borough of Manhattan in New York City, between Central Park and the East River. The Upper East Side lies within an area bounded by 59th Street to 96th Street, and the East River to Fifth Avenue-Central Park...
, in the area of the city known as Museum Mile
Museum Mile, New York City
Museum Mile is the name for a section of Fifth Avenue in Manhattan in the city of New York, in the United States, running from 82nd to 104th streets on the Upper East Side in a neighborhood known as Carnegie Hill. The "mile", which contains one of the densest displays of culture in the world, is...
. It occupies the block bounded by Madison and Fifth Avenues and 86th
86th Street (Manhattan)
86th Street is a major two-way street in the Upper East Side and Upper West Side of the New York City borough of Manhattan.On the West Side its continuous cliff-wall of apartment blocks includng The Belnord is broken by two contrasting landmarked churches at prominent corner sites, the Tuscan...
and 85th
85th Street (Manhattan)
85th Street is a Westbound-running street between East End Avenue and Riverside Drive in the borough of Manhattan in New York City. 85th Street provides access to the 85th/86th Street Transverse which runs east-west through Central Park heading between the Upper East Side and Upper West Side...
Streets. It is adjacent to and relates architecturally with the former Croyden Hotel, now rental apartments, that occupies the remainder of the block to Madison Avenue.
In 1990, 1049 5th Avenue was purchased by Jack C. Heller of Heller Macaulay Equities, Inc. and converted into 54 (now 45) luxury condominiums averaging 3000 square feet (278.7 m²) each.
Address change
Despite its official address on Fifth Avenue, the building is actually located a short distance east on 86th Street86th Street (Manhattan)
86th Street is a major two-way street in the Upper East Side and Upper West Side of the New York City borough of Manhattan.On the West Side its continuous cliff-wall of apartment blocks includng The Belnord is broken by two contrasting landmarked churches at prominent corner sites, the Tuscan...
, offset from Fifth Avenue by the William Starr Miller House
William Starr Miller House
The William Starr Miller House is a mansion located on 1048 Fifth Avenue and 86th Street, in the Upper East Side of New York City.- History :It was originally constructed for the industrialist William Starr Miller...
, which abuts its western facade.
When originally constructed, the address of the building was 2 East 86th Street. During its renovation, the building owners applied to the Manhattan Borough President
Borough president
Borough President is an elective office in each of the five boroughs of New York City.-Reasons for establishment:...
's office for an address change, citing the fact that all floors above the seventh provide an unobstructed view of Central Park
Central Park
Central Park is a public park in the center of Manhattan in New York City, United States. The park initially opened in 1857, on of city-owned land. In 1858, Frederick Law Olmsted and Calvert Vaux won a design competition to improve and expand the park with a plan they entitled the Greensward Plan...
. This was for marketing purposes, due to the additional value that accrues to real estate with a Fifth Avenue address. Such changes are unusual but not unheard of, and are granted if deemed justified.
The address change was approved and implemented in the spring of 1991.
Conversion
After serious financial problems on the part of its owner, 1049 5th Avenue was renovated and converted into luxury condominium apartments starting in 1990. Amid a perilous market for luxury real estateLuxury real estate
Luxury real estate is the real estate market niche targeted at the highest socio-economic group of consumers. -Definition:The characteristics that define luxury real estate differ among countries...
, the condominiums were offered for sale starting in 1991 at $1,200 to $1,500 per square-foot, making them the highest-priced residential apartments ever offered for sale in New York City.
Gerald Guterman
In the mid-1980s, 1049 5th Avenue was purchased by New York condominium developer Gerald GutermanGerald Guterman
Gerald Guterman is an international real estate developer and investor. He is one of the largest co-op and condominium converters in the United States. He also served as a Commissioner of the United States Romania Action Commission under the sponsorship of the United States Center for Strategic...
, who then began renovations on the building and started purchasing the apartments of long-term tenants. Later, Guterman suffered substantial financial setbacks due to the Tax Reform Act of 1986
Tax Reform Act of 1986
The U.S. Congress passed the Tax Reform Act of 1986 to simplify the income tax code, broaden the tax base and eliminate many tax shelters and other preferences...
, which significantly reduced the value of his real estate holdings, and also the 1987 stock market crash
Black Monday (1987)
In finance, Black Monday refers to Monday October 19, 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The crash began in Hong Kong and spread west to Europe, hitting the United States after other markets had already declined by a significant margin...
. Renovations to the building were halted, and Guterman was forced to declare bankruptcy. Despite an intensive legal struggle by Guterman to retain ownership of the building, it was placed in receivership
Receivership
In law, receivership is the situation in which an institution or enterprise is being held by a receiver, a person "placed in the custodial responsibility for the property of others, including tangible and intangible assets and rights." The receivership remedy is an equitable remedy that emerged in...
and ordered sold.
Jack C. Heller
On January 19, 1990, 1049 5th Avenue was purchased by Jack C. Heller, partner in the New York real estate development company Heller Macaulay Equities, Inc. The sale price was $38 million, with financing provided by InvestcorpInvestcorp
Investcorp is a manager of alternative investment products, serving high-net-worth private and institutional clients. Its principal client base is in the six countries of the Gulf Co-operation Council, but it also has institutional clients in North America and Europe...
. Heller's additional bid failed to purchase the adjoining former William Starr Miller House
William Starr Miller House
The William Starr Miller House is a mansion located on 1048 Fifth Avenue and 86th Street, in the Upper East Side of New York City.- History :It was originally constructed for the industrialist William Starr Miller...
, a Louis XIII
Louis XIII of France
Louis XIII was a Bourbon monarch who ruled as King of France and of Navarre from 1610 to 1643.Louis was only eight years old when he succeeded his father. His mother, Marie de Medici, acted as regent during Louis' minority...
/Beaux-Arts structure located on the corner of Fifth Avenue.
Heller, a 1978 Boston University
Boston University
Boston University is a private research university located in Boston, Massachusetts. With more than 4,000 faculty members and more than 31,000 students, Boston University is one of the largest private universities in the United States and one of Boston's largest employers...
graduate, was heir to the capital of the Foreston Group, a family-owned conglomerate founded in 1906 that was the largest independent coal mining and distribution operation in the US, then valued at $150 million. In 1985, reviving the remnants of his family's real estate subdivision, Heller began developing residential real estate. During the years 1985-1990, he built some 1,500 apartments, including Le Chambord, a 23-story luxury condominium building at 350 East 72nd Street
72nd Street (Manhattan)
72nd Street is one of the major bi-directional crosstown streets in the New York City borough of Manhattan. Where the west end of 72nd Street curves into the south end of Riverside Drive, the memorial to Eleanor Roosevelt stands in Riverside Park. At this end of the street is the landmarked...
. About architecture, Heller expressed admiration of the iconic apartment houses of Rosario Candela
Rosario Candela
Rosario Candela was an Italian American architect who achieved renown through his apartment building designs in New York City, primarily during the boom years of the 1920s. He is credited with defining the city's characteristic terraced setbacks and signature penthouses. Over time, Candela's...
. He founded Heller Macaulay Equities in 1989 with partner Duncan Macaulay. Of 1049 5th Avenue, Heller said, "Never again in my lifetime do I expect to see the chance to build a great building on or within a few steps of Fifth Avenue".
Renovation
Heller divided 1049 5th Avenue into 54 apartments (later reduced to 45) with an average of 3000 square feet (278.7 m²) of floor space per apartment, including four penthouses with up to 4,600 square feet. He then spent $47 million on building renovations, almost $1 million per apartment. Designed by Costas KondylisCostas Kondylis
Costas Kondylis and Partners, LLP, is an architectural firm headquartered in Manhattan. Their influence on New York City’s skyline has been commented on by New York Living Magazine – "Costas Kondylis and Partners might be the architects most responsible for the way New York City looks and lives...
Architects and appointed by the up-market interior design firm Cullman & Kravis, the apartments were accommodated with extensive luxury features, including separate heating and cooling for each room, 12 inches (304.8 mm) concrete floors, large picture windows, and a butler's pantry in most apartments. Only four of the resulting apartments have fewer than two bedrooms.
All apartments on the west side of the building above the seventh floor overlook Central Park
Central Park
Central Park is a public park in the center of Manhattan in New York City, United States. The park initially opened in 1857, on of city-owned land. In 1858, Frederick Law Olmsted and Calvert Vaux won a design competition to improve and expand the park with a plan they entitled the Greensward Plan...
and the Reservoir
Jacqueline Kennedy Onassis Reservoir
The Jacqueline Kennedy Onassis Reservoir — originally and sometimes still known as the Central Park Reservoir — is a decommissioned reservoir in Central Park in the borough of Manhattan in New York City, USA.-Description:...
, over the top of the adjacent William Starr Miller House
William Starr Miller House
The William Starr Miller House is a mansion located on 1048 Fifth Avenue and 86th Street, in the Upper East Side of New York City.- History :It was originally constructed for the industrialist William Starr Miller...
. This is a highly desirable feature for a condominium in the city and one which fetches a substantial premium. This side of the structure was extensively reworked, with large windows and balconies on some apartments.
Other luxury features of the property include refrigerator storage for deliveries, storage lockers, and a bicycle room, but no pool or garage. All of the apartments have their own laundry facilities and some have fireplaces. In addition, the building employs elevator operators. Upscale grocer Dean & DeLuca
Dean & DeLuca
Dean & DeLuca is a chain of upscale grocery stores. The first one was established in New York City's SoHo district by Joel Dean, Giorgio DeLuca and Jack Ceglic in September 1977. It is headquartered in Wichita, Kansas.-Locations:...
maintains a storefront on the northwest corner of Madison Avenue and 85th Street.
Renovation began after purchase of the building in 1990 and was completed in 1993. In addition to the condominiums, staff apartments were offered for sale on a first-come-first-served basis for $100,000 each.
Economic climate
The renovation of 1049 5th Avenue was undertaken during a dismal economic climate for luxury real estate. The same economic circumstances that overtook Gerald Guterman had not yet subsided, and many top real estate development companies were failing. One of the prestige luxury addresses in Manhattan, Trump PalaceTrump Palace Condominiums
Trump Palace Condominiums is a 623ft tall skyscraper at 200 East 69th Street in New York City, New York. It was completed in 1991 and has 54 floors...
, was struggling, and several recently constructed residential high-rises sat empty. Prices for New York condominiums had fallen at least 25 percent since 1989, and plummeted a whopping 4.6 percent just in the second quarter of 1991. Worse, the malaise extended well beyond New York. The world was in the midst of a severe economic downturn, the recession of 1991.
About Heller's ultra-luxury condominium development at 1049 5th Avenue, New York Magazine
New York (magazine)
New York is a weekly magazine principally concerned with the life, culture, politics, and style of New York City. Founded by Milton Glaser and Clay Felker in 1968 as a competitor to The New Yorker, it was brasher and less polite than that magazine, and established itself as a cradle of New...
asked, was the project "Folly on the 'Fifth'?" Real estate expert James Austrian, of Austrian, Roth and Partners, was scathing: "I think Jack Heller is crazy, but I wish him well".
Amidst these perilous economic circumstances and skeptical criticism from industry experts, Heller appeared supremely confident, almost ebullient. He expressed confidence that his luxury project would command high prices despite the general depression of real estate values, and he predicted that he would not be able to live in the building because every apartment would be sold.
Sales success
The condominiums at 1049 5th Avenue were opened for sale during the first week of October 1991, with initial prices at $1,200 to $1,500 per square-foot. These prices made them the highest-priced residential apartments ever offered for sale in New York City.By 1993, Heller had sold sixteen of the apartments for prices ranging from $800 to $950 per square foot. That year he recorded the two highest condominium sale prices in Manhattan: $3.5 million and $3.8 million. On June 22, 1994, Entrepreneur Magazine reported the spectacular sale of a 4661 square feet (433 m²) penthouse for $5.5 million, or $1,100 per square-foot, the record for that year. The apartment featured 4 bedrooms, 6.5 marble baths, a living room with a wood-burning fireplace, media room, library, formal dining room, granite kitchen, and a maid's room. It also featured 4 terraces and 360-degree views.
Heller took the opportunity of this sale to again express confidence in his project and New York real estate in general, saying that it proved "that the condominium market in New York City is again thriving and getting stronger every day."
As a result of his high-profile success with 1049 5th Avenue, Heller was named one of the "40 Under 40" business luminaries by Crain's New York Business in 1993.
Rush Limbaugh
American radio personality Rush LimbaughRush Limbaugh
Rush Hudson Limbaugh III is an American radio talk show host, conservative political commentator, and an opinion leader in American conservatism. He hosts The Rush Limbaugh Show which is aired throughout the U.S. on Premiere Radio Networks and is the highest-rated talk-radio program in the United...
began his national broadcasting career in Manhattan in 1988. In 1992, he earned $3.5 million, and he was on his way to making a fortune. Limbaugh purchased a 10-room penthouse at 1049 5th Avenue, with a fireplace and four terraces, for "just under" $5 million in 1994.
After moving his broadcast operation to Palm Beach, Florida
Palm Beach, Florida
The Town of Palm Beach is an incorporated town in Palm Beach County, Florida, United States. The Intracoastal Waterway separates it from the neighboring cities of West Palm Beach and Lake Worth...
in the late 1990s, Limbaugh railed on his program about high state income tax rates in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
. In the spring of 2009, New York State adopted a temporary income tax surcharge on wealthy individuals, at which time Limbaugh threatened to sell his condominium and leave the city forever. A transcript of the show on Limbaugh's website was titled, "El Rushbo to New York: Drop Dead." New York Governor David Paterson
David Paterson
David Alexander Paterson is an American politician who served as the 55th Governor of New York, from 2008 to 2010. During his tenure he was the first governor of New York of African American heritage and also the second legally blind governor of any U.S. state after Bob C. Riley, who was Acting...
made light of Limbaugh's criticism, saying, “If I knew that would be the result, I would’ve thought about the taxes earlier.”
Limbaugh made good on his promise to sell his apartment, and the condominium went into contract on July 8, 2010, for "a bit under" $12.95 million.
See also
- William Starr Miller HouseWilliam Starr Miller HouseThe William Starr Miller House is a mansion located on 1048 Fifth Avenue and 86th Street, in the Upper East Side of New York City.- History :It was originally constructed for the industrialist William Starr Miller...
- Carnegie Hill
- Upper East SideUpper East SideThe Upper East Side is a neighborhood in the borough of Manhattan in New York City, between Central Park and the East River. The Upper East Side lies within an area bounded by 59th Street to 96th Street, and the East River to Fifth Avenue-Central Park...
- Museum Mile, New York CityMuseum Mile, New York CityMuseum Mile is the name for a section of Fifth Avenue in Manhattan in the city of New York, in the United States, running from 82nd to 104th streets on the Upper East Side in a neighborhood known as Carnegie Hill. The "mile", which contains one of the densest displays of culture in the world, is...
- Central ParkCentral ParkCentral Park is a public park in the center of Manhattan in New York City, United States. The park initially opened in 1857, on of city-owned land. In 1858, Frederick Law Olmsted and Calvert Vaux won a design competition to improve and expand the park with a plan they entitled the Greensward Plan...
- Madison Avenue
- Fifth Avenue
- 86th Street (Manhattan)86th Street (Manhattan)86th Street is a major two-way street in the Upper East Side and Upper West Side of the New York City borough of Manhattan.On the West Side its continuous cliff-wall of apartment blocks includng The Belnord is broken by two contrasting landmarked churches at prominent corner sites, the Tuscan...
- 85th Street (Manhattan)85th Street (Manhattan)85th Street is a Westbound-running street between East End Avenue and Riverside Drive in the borough of Manhattan in New York City. 85th Street provides access to the 85th/86th Street Transverse which runs east-west through Central Park heading between the Upper East Side and Upper West Side...
- Gerald GutermanGerald GutermanGerald Guterman is an international real estate developer and investor. He is one of the largest co-op and condominium converters in the United States. He also served as a Commissioner of the United States Romania Action Commission under the sponsorship of the United States Center for Strategic...
- Costas KondylisCostas KondylisCostas Kondylis and Partners, LLP, is an architectural firm headquartered in Manhattan. Their influence on New York City’s skyline has been commented on by New York Living Magazine – "Costas Kondylis and Partners might be the architects most responsible for the way New York City looks and lives...