Hilfiger Buys 5 Madison Ave. Clock Tower Building

The Clock Tower building at 5 Madison Avenue, formerly slated to be turned to condos by Africa Israel Investments, is being purchased by designer Tommy Hilfiger for $170 million. While Africa Israel divests itself of properties (they also sold the top 11 floors of the New York Times building at 229 W. 43rd), Hilfiger et al are getting into the game.

New York based Phillips-Van Heusen bought privately held Tommy Hilfiger for $3 billion last spring, making them one of the world’s largest clothing companies with other heavy hitters like Calvin Klein and DKNY under the same umbrella. Now that they have dominion over clothes, rumor has it that they plan to move into the hotel business. Hilfiger’s purchase fits the trajectory.

The 41-story Clock Tower, home to MetLife since 1908, was purchased by Africa Israel in 2007 for $200 million. Versace was hired is 2008 for interior renovations. The projected renovations, which were to take two years to complete, were estimated at $110 million, and the building value was expected to be $1 billion after renovations were complete.

With these lofty goals, Africa Israel announced in 2008 that they would be selling a 50% share in the building for $150 million, three quarters of what they bought it for. But somewhere, somehow the plans went awry. Perhaps the clothing tycoons will have better luck.

Source: The Real Deal, IB Times, Plan NYC

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