Kipp-Stawski to develop Grand Central office tower.

Kipp-Stawski, Inc., an experienced private development and investment company, has begun construction on a new 25-story, 360,000 square-foot Class A office tower at 360 Madison Ave. The glass and steel tower will rise over the northwest corner of East 45th Street and Madison Avenue, the heart of Midtown's Grand Central district, where the market availability rate for Class A properties just hit a 15-year low of less than 5%. 360 Madison will be completed In the fourth quarter of 2001.

Located at the site of the former Abercrombie Fitch building, the new 360 Madison Avenue will encompass both new ground-up construction as well as major redevelopment. "We're known for creative solutions and the extreme quality of our 'product," said Dr. Axel Stawski, Principal of Kipp-Stawski. "In the case of 360 Madison, we are going all out to create a magnificent new office tower that makes efficient use of a very complex site."

Development of 360 Madison to Kipp-Stawski's exacting plans requires the demolition of the current structure at 17 East 45th Street, as well as the total redevelopment and addition of seven floors to the existing 17-story property at 360' Madison. Both properties will be combined, resulting in a new 25-story office tower that will be nearly a third larger than the combined existing properties.

"This is 99-percent new construction, and will deliver the finishes, technology, efficiencies and flexibility that the City's most discriminating tenants demand of modem Class-A properties," said Bruce Mosler, Executive Vice President of Cushman & Wakefield. Mr. Mosler, Executive Director Paul Glickman and Senior Director Matthew Astrachan will serve as the exclusive leasing team for 360 Madison Avenue. "We're delighted to represent the only new construction in the heart of Midtown that will be available for occupancy in the fall, and accommodate a wide range of tenants."

Full floors at 360 Madison will range from 5,400 sq.ft to 22,000 sq.ft., with several contiguous blocks from 22,000 sq.ft. to 132,000 sq.ft. The building will also feature more than 15,000 square feet of retail space on both Madison Avenue and East 45th Street.

Demolition has already begun at the site, insuring swift delivery of the product! "With the exception of the build-to-suit Bear Steams tower, 360 Madison is the only new product in the Grand Central District," said C&W's Mr. Glickman. "The opportunity is unparalleled -- in timing, efficiency, quality and location. We are confident the remaining space will be snapped up well before the steel reaches the sky."

Leases with the Screen Actors' Guild and David Berdon & Company, one of the nation's leading accounting firms, have already been signed, taking about one-third of 360 Madison Avenue's available space.

"We were confident about 360 Madison from its conception, but even we have been overwhelmed by the market's response to our plans," said Stacey Fabrikant, Director of Leasing for Kipp-Stawski. "Pent-up demand, and anticipated demand are both driving strong leasing in Midtown -- much of it focused in the Grand Central District. We've been the focus of tremendous inquiry, and activity to date. As we inaugurate our formal leasing and marketing program with Cushman & Wakefield, we expect a terrific reception from the market."

Fabrikant and the C&W. leasing team pointed to 360 Madison's location as one key factor, a block-and-a-half from Grand Central Station.

The general contractor for the project is HRH Construction, which also built 565 Fifth. Rosenwasser/Grossman Consulting Engineers will be charged with the intricate task of seamlessly connecting the stripped down 360 Madison with the brand new structure at 17 East 45th. Construction financing will come from Helaba Landesbank Hessen-Thuringen of Frankfurt, Germany.