The Spanish conglomerate Inditex Group and parent company to clothing retailer Zara, is preparing to grab a piece of prime Soho commercial space in a $250 million deal, according to the New York Post. The property, which is located at 503-511 Broadway between Broome and Spring streets, is currently leased by Old Navy, who has rented the ground floor through January 2018.
Sources told the Post that the deal could encompass three 25,000-square-foot floors — including Old Navy’s ground floor space, whose rent will reach the under-the-market rate of $104 per square foot next year. The deal could also include the lower level, which had been rented to the Rock & Roll Hall of Fame Annex at one time, and the vacant second floor, which is sometimes used for fashion events.
So far it remains unclear whether Inditex is playing to buy the building outright or is merely purchasing a licensing agreement with the Fung family building owners, but the $250 million price would work out to $10,000 a square foot for just Old Navy’s space, or $4,000 per square foot for the whole building, according to the Post.
Back in March 2011, Inditex paid more than $331 million, or $9,476 per square foot, for about 35,000 square feet at Midtown’s 666 Fifth Avenue, where it opened a Zara store. [NYP] –Christopher Cameron