Coca-Cola's $900M Deal To Sell Fifth Avenue Trophy Could Be Falling Apart

Google Maps
711 Fifth Ave.

Nightingale Properties is reportedly trying to change its plans to buy the famed Coca-Cola building on Fifth Avenue.

The company — which had struck a deal to buy the property at 711 Fifth Ave. for more than $900M, with Ashkenazy Acquisition Corp. and Wafra as joint venture partners in May — has filed a lawsuit in Manhattan State Supreme Court claiming Coca-Cola is in breach of their agreement, The Real Deal reports.

Nightingale is arguing that Coca-Cola didn't reveal a letter from back in 2017 between the company and the Swatch Group, which owns Swiss watchmaker Breguet, a ground-floor retail tenant, per TRD.

Nightingale planned to convince Swatch to buy out the remainder of its lease in the building, which could be a windfall if it can sign a new tenant at increased rent. Nightingale claimed in court the letter could changes its outlook for the deal, therefore Coca-Cola should have previously disclosed it, The Real Deal reported. There are questions, however, as to whether or not Nightingale has the capital for the deal, which would be one of the largest in the company's history.

Coca-Cola announced its plans to sell the building late last year. The soft drink giant has owned it since 1983, when it picked it up as part of its acquisition of Columbia Pictures.

The building, which is at the corner of East 55th Street, spans 354K SF and is mainly used for office and retail space. In 2017, Ralph Lauren shut its store there amid declining sales. Cushman & Wakfield’s Doug Harmon and Adam Spies are marketing the building.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's New York Newsletters
Related Stories

From Sector-Specific To Asset-Focused: Investment Strategies That Perform Today

Independence Realty Trust To Buy Centerspace, Creating $8.1B REIT

Innovo On Leasing Spree At Multistory LIC Warehouse: The N.Y. Deal Sheet

Summer Broke The Script. Here's What CRE Is Walking Back Into

HUD Wants To Make It Easier To Bring Private Capital Into Public Housing

EXCLUSIVE: Georgia-Pacific Scraps Conversion Plans For Its Atlanta HQ

Mamdani Administration Applauds Transfer Of 3 Distressed Rent-Stabilized Buildings

What New York Can Learn From California's Push To Cut Environmental Red Tape

Crow Holdings Raising Nearly $3.3B Fund, Its Largest Ever

LaSalle Wins Extra £300M For £1B AUM Local Authority Pension Mandate

CRE's Clearance Rack Is Empty, Leaving Landlords To Create Their Own Value

Related Signs First Tenants At Madison Avenue Tower: The N.Y. Deal Sheet