The Real Deal New York

Fat checks for retail buyouts

Banking on higher-paying tenants, landlords dig deep to get merchants to walk away

May 22, 2015 10:00AM
By Rich Bockmann

Juicy Couture parent company LCI Holdings got $52.4 million from Jeff Sutton and SL Green Realty last year to exit the lease for its former flagship store at 650 Fifth Avenue. The three-floor, 18,000-square-foot space remains unoccupied, and is now surrounded by scaffolding.

Juicy Couture at 650 Fifth Avenue

From the May issue: The massive rise in store rents is prompting some Manhattan landlords and developers to reach deep into their wallets to convince retailers to walk away from their leases. Those players are not willing to wait for retail tenants’ leases to expire. Instead, they’re paying them big sums to leave, knowing they can lock in new rents at far higher amounts. [more]