589 Fifth Avenue H&M Building Lists for Up to $300M

German investment manager Manova Partners has put the leasehold of 589 Fifth Avenue up for sale for up to $300 million. The 184,000 square foot office and retail tower in Midtown is anchored by H&M, and Newmark’s Adam Spies and Marcella Fasulo are marketing the listing.

Why it matters

The ask values the 99-year ground lease 18 percent below what Manova’s predecessor paid to acquire it. ACRIS doc 2019101400336001 shows GLL Real Estate Partners, then a unit of Macquarie Group, closed on the leasehold for $365,230,991 in 2019 before GLL spun off and relaunched as Manova in 2024. For developers and investors shopping Fifth Avenue retail, a trophy corner is now priced at a discount to its last trade, not a premium. Several retailers are already circling the deal with an eye on taking over H&M’s 68,000 square foot flagship space once its lease runs out in 2033, according to a source TRD cited. H&M currently pays $319 per sq ft there.

The numbers

The 2019 closing carried financing beyond the headline purchase price. ACRIS doc 2019101400336005 records a $181,625,000 loan from German bank Deutsche Pfandbriefbank tied to the same transaction, matching the roughly $182 million figure reported with the sale, and a separate doc, 2019101400336004, shows a smaller $6,625,000 mortgage recorded the same day. Deutsche Pfandbriefbank said in 2025 that it would stop new U.S. commercial real estate lending to focus on Europe and would securitize or sell its $4.6 billion American loan book, a detail that bears on who ultimately controls the capital stack behind any buyer’s financing.

What’s next

Nothing here is a completed sale. Manova has listed the leasehold; a transfer of record would still need a new ACRIS filing once a buyer signs. Developers and brokers tracking New York retail should watch whether a buyer prices the deal off H&M’s in-place rent through 2033 or off redevelopment potential after the lease rolls, the same calculus now playing out a few blocks away at 570 Fifth Avenue. Deutsche Pfandbriefbank’s retreat from U.S. lending also means whoever buys 589 Fifth will likely need to arrange fresh financing rather than assume the existing loan.