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New York

PetSmart chewing over new store at 10 Madison Sq. West

Pet supply store in late-stage talks for lease at Savanna’s retail condo

PetSmart's Noho store at 632 Broadway, Savanna's Chris Schlank and Nicholas Bienstock and 10 Madison Square West
PetSmart's Noho store at 632 Broadway, Savanna's Chris Schlank and Nicholas Bienstock and 10 Madison Square West

10 Madison Square West is going to the dogs.

PetSmart is in late-stage talks to lease Savanna’s retail condo at the foot of the luxury condominium on Madison Square Park.

The Arizona-based pet supplies store, which is in expansion mode following an $8.7 billion private-equity buyout last year, is finalizing a lease covering more than 16,000 square feet at the base of the property, sources told The Real Deal.

Savanna [TRDataCustom] bought the retail condo for $56.5 million from Witkoff in 2014. Witkoff and Howard Lorber’s New Valley converted the upper portion of the 24-story building, formerly a part of the International Toy Center, into 125 luxury condos.

The retail space sits at the intersection of 24th Street, Broadway and Fifth Avenue across from Eataly, and features 200 feet of wraparound frontage and 15-foot ceilings.

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The financial terms of the lease weren’t immediately clear, but average retail asking rents on Broadway and Fifth Avenue south of 23rd Street fall in the range of $380 to $450 per square foot, according to figures from the Real Estate Board of New York.

JLL’s Amy Zhen and Hilary Sievers are handling leasing at the property. Neither broker was available for comment, nor was a representative for Savanna.

PetSmart currently has a store at 632 Broadway in Noho, which it opened in 2012, and one at 517 East 117th Street in East Harlem. Competitor Petco has at least 10 locations in Manhattan, including one at 860 Broadway on the north side of Union Square Park.

The company opened a total of 50 new stores in the U.S. and Canada in 2015 and plans to open roughly 80 new locations by the end of this fiscal year.

A consortium of private equity buyers led by BC Partners paid $8.7 billion to acquire PetSmart last year in a leveraged buyout.

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