The Real Deal New York

Zegna to open flagship store at the Crown Building

Clothier’s owner personally negotiated the 9K sf lease with Jeff Sutton

March 02, 2016 09:35AM

730 Fifth Avenue in Midtown (inset, from left: Sandeep Mathrani and Jeff Sutton)

730 Fifth Avenue in Midtown (inset from left: Sandeep Mathrani and Jeff Sutton)

Ermenegildo Zegna plans to open a new flagship store, right on Billionaires’ Row.

The luxury Italian clothier took 9,000 square feet across the lower two floors of the Crown Building at 730 Fifth Avenue, which is owned by Jeff Sutton’s Wharton Properties and Sandeep Mathrani’s General Growth Properties, the New York Post reported.

The firm’s CEO, Ermenegildo “Gildo” Zegna, grandson of the founder with the same name, negotiated the deal personally with Sutton.

Milan-based Zegna signed a 15-year lease. Asking rent for the space was about $4,000 per square foot, according to the Post.

Late last year, Sutton and Mathrani signed Italian luxury goods retailer Bulgari to a 15-year lease for 3,000 square feet at the space next door, at a rent of about $5,500 per square foot, a city record.

The partners bought the 390,000-square-foot Crown Building last year for $1.8 billion. It was the highest price per square foot ever paid for an entire office building, at $4,564 per foot.

In April 2015, Michael Shvo and Russian developer Vladislav Doronin bought the fourth through 24th floors of the building, more than half of its square footage, paying about $500 million. The partners are planning an Aman hotel and 23 luxury condos there. [NYP]Ariel Stulberg