Millennium Partners plans two more deals.

Two new deals are in the works for Millennium Partners, the trio of Philip Aarons, Christopher Jeffries and Philip Lovett.

In a unique swap that will ultimately benefit both parties, Millennium is hoping to build a new residence for the Chinese Mission to the United States on a site at First Avenue and 35th Street that is more convenient to the United Nations. The current ten-story mission is directly next door to the Tower Records site on Columbus Avenue between 66th and 67th Street, where Millennium hopes to build a new tower.

Recall that Millennium Partners purchased the Tower Records site in December 1993 at 1961 Broadway from General Media Properties for $23 million. The other address of the site is 143 West 66th Street.

At the time, West Side community leaders were seething over the 545-foot height of the Lincoln Square project, which includes a condominium tower, a multiplex and a sports club, and they pressed the Planning Commission to enact the bulk zoning laws, limiting the bulk the height of future buildings, both in the Special Lincoln Square District, as well as on the Upper East Side.

This zoning requires 60 percent of the bulk to be packed into the first 150 feet and will result in squatter, fatter buildings of 25 to 30 stories. An eight-story street wall must also be constructed.

Arlene Simon, who heads the community group Landmark West, feels the new zoning requirements do not help the community maintain control of its surroundings because developers can erect as-of-right structures without community review, and can transfer air rights to make them even bigger. "We got nothing. The zoning was changed and it accomplished nothing," she said.

Now, Tower Records is next to the Chinese Mission to the United Nations, at 155 West 66th Street. In a complicated transaction and in return for its building and the valuable air rights, Millennium Partners is about to sign a letter of intent that will allow it to construct the Chinese a brand new building on land at 35th Street and First Avenue.

Sources indicate the land may be a site at 350 East 35th Street at the northwest corner of First Avenue, owned by the Estate of Walter Langer. That structure is five stories and is about 125 by 75 feet, and a taller building can be constructed there.

The Archidocese of New York owns the mid-block building, which is a residence for priests and takes up only a portion of the 72 x 75 foot lot.

The Estate of Walter Langer also owns the three-story building on the corner of 34th Street at 599 First Avenue, a/k/a 355 East 34th. It is as yet unclear if the entire block-front or some of the air rights are being harnessed by Millennium.

No one from Millennium Partners would comment on the potential transaction and the phone listed for the Langer estate was unanswered. A spokesperson for the Archdiocese was unaware of any interest in the property.

So far, the Chinese are happy and Millennium Partners is happy, as they will now own the site next to Tower Records and can use the air rights, if not a portion of the property.

At a time when real estate was in the doldrums, the three partners concocted the Lincoln Square project, a mixed-use deal put together on a strictly contingency basis for all the players involved, and balanced it on the backs of the retail components. That project, including the Residences at Lincoln Square, and the condominiums of Millennium Tower, is now completely sold, leased and rented out, and features the Sony 3D IMAX theater, a multiplex, a large sports club and a 70-foot wide slender tower with 314 luxury apartments.

Madison Avenue Condo

In another transaction, the group has finally acquired the residential portion of 28 East 70th Street at Madison Avenue and will turn it into luxury condominum units.

The architectural firm of Beyer Blinder Belle, known for its historical renovation work, has drawn up plans for new full floor residential condominiums that will encompass up to 4,200 square feet.

Simultaneously, the ground floor retail portion was sold to the retailer Prada, currently located on 57th Street, for $12 million. The new store, comprising 14,000 square feet, includes a portion of the basement and first floor plus the entire second and third floors, has been under construction and is expected to open in 18 months.

"This will be their flagship United States facility," said David Rothstein, who is in charge of the development for Millennium.

According to area retail brokers, that deal was first supposed to be made with Armani, but they dropped out.

Above the Prada space will be 12 floors of single floor condominium apartments. "They will be a little smaller at the top but certainly as spectacular," said Rothstein.

The apartments have been designed after much research for full-floor grand style living, Rothstein noted, with his and her baths, a master bedroom suite, and "as commercial as you get in a residential kitchen. There will also be a living room, library, den, maid's room and formal dining areas, along with several bedrooms. The lobby is being redesigned in an English style.

Rothstein said they will keep the current entrance on 70th Street as it has a "good low number," not to mention that Madison Avenue is usually thought of as a commercial and retail street.

The group expects to sell the units from $2.7 million to $3.4 million on a $750 plus per square foot basis. "We think its certainly achievable," said Rothstein. "They are very well thought out units. We've been working on the unit design for many months and incorporating as many comments as we could. People don't design apartments like this anymore," he added.

The top two floors will be particularly special. The 14th floor has both north and south terraces, while the 15th floor unit owner will have the ability to access the rooftop.

Robert Burnett, an industry consultant and head of Halstead's condominium sales, said the timing is right because if there is one shortage of product, it is these large condominiums.

"While ordinarily I would say $750 with a lack of views would be too high, they have a shot at it only because there are so few large apartments around and often they are awkward combinations of several apartments," he said. "This is about the only time I've actually concurred with a developer's fantasies about his prices."

Units at the Heller condominium at 1049 Fifth have achieved $1,000 a square foot, with an average of around $850 a foot, so Burnett says $750 a foot "would not be far out of line, but for the lower floors they will have to be significantly lower than that." He also disagrees with the low floor single apartment strategy.

In that particular location, Burnett added, there aren't any condominiums. "You have the return of foreign buyers to the market-place and they will now have that option."

The entire package was two years in the making, as sources say it revolved around an equity swap with Morgan Guaranty Trust, the owner of the property. According to people in the real estate community, Morgan was into the property for some $25 million.

The old hotel-style building is known on Dept. of Finance records as the Hampton House - but not the Hampton House on First Avenue - and was used to house the investment company's trainees. The company originally swapped Millennium a piece of the equity in exchange for apartments at Millennium tower. Now that the Tower is complete and the trainees have moved in, the transfer has been completed for a total benefit of $13.9 million for Morgan, according to transaction records.

With no new product in this prime Madison Avenue area, brokers expect the condo units will be gobbled up quickly for top dollar.