The Real Deal New York

DKNY won’t relocate to Aby Rosen’s 285 Madison

Beleaguered fashion label had planned to take 85K sf at the building

November 02, 2015 08:00AM

Aby Rosen 285 Madison

From left: Aby Rosen and 285 Madison Avenue in Midtown

The reversals continue for fashion brand DKNY.

Aby Rosen’s RFR Realty announced that DKNY won’t be taking 85,000 square feet at 285 Madison Avenue, as had been previously reported.

“The transaction is on hold pending an internal decision by DKNY regarding its size requirements and the related timing,” a spokesperson for RFR told the Commercial Observer. “RFR is continuing to market the space per its standard practice. If the space is still available when DKNY concludes its review, RFR will be pleased to re-engage with them.”

It’s unknown what rent RFR was asking for the space, but it was marketing it at $78 per square foot back in July, according to the Observer.

The label announced last month it would take the space at the 25-story, 425,000-square foot office building, leaving its current, significantly larger office at 240 West 40th Street, where the company’s 135,000-square-foot lease expires next year.

DKNY is in the midst of a shakeup. The company filed a WARN notice in July, signaling that it would lay off dozens of employees. One of the company’s co-founders, fashion icon Donna Karan, announced she was leaving the firm around the same time.

The company is also planning to close its flagship 18,000-square-foot retail location at 655 Madison Avenue, according to Crain’s.

Rosen purchased 285 Madison Avenue for $190 million in 2012 with plans to convert it to a hub for creative tenants.

Alexander Chudnoff and Mitch Konsker of JLL are marketing the space for RFR. [NYO]Ariel Stulberg