Risky retail plan finds footing

Zara and Swatch new store deals boon for investors at 666 Fifth's retail condo, but it's been a white-knuckled ride

TRD New York /
Apr.April 01, 2011 04:07 PM
A rendering of the retail condo at 666 Fifth Avenue, where Zara, Hollister, Swatch and Uniqlo have all taken space

From the April issue: The notion of a $1 billion retail blockfront on Fifth Avenue seems like a pipe dream from the boom times. But it may yet happen.
The record-setting purchase last month of a slice of the retail space at 666 Fifth Avenue by the parent company of Spanish clothing store Zara looks to be the tonic needed to get the once-wobbly investment by the Carlyle Group, Crown Acquisitions and Kushner Companies into the black. But it has been a turbulent road for the investment trio.
In 2008, buoyed by a top-of-the-market lease from Abercrombie & Fitch, they paid $525 million for an 89,000-square-foot retail condo at the base of the 41-story office tower, located between 52nd and 53rd streets.
Then the market tanked, and the investors couldn’t find another prime retailer for almost two years — leaving them on the hook for more in expenses than they were taking in.
This month The Real Deal takes a behind-the-scenes look at just how much the downturn hurt the investment group in the two years they were unable to find a blockbuster tenant. [more]


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
356 Sackett Street (Google Maps, Elliman)

Brooklyn’s back: Luxury contract volume hits four-month high

Brooklyn’s back: Luxury contract volume hits four-month high
Facing jail time, Lori Loughlin sells Bel Air manse at huge discount

Facing jail time, Lori Loughlin sells Bel Air manse at huge discount

Facing jail time, Lori Loughlin sells Bel Air manse at huge discount
New York Attorney General Letitia James and TradeOff head Ron Lattanzio (Getty, Linkedin)

TradeOff settles sexual harassment claims for $1.5M

TradeOff settles sexual harassment claims for $1.5M
The Hillandale estate (Knight Frank)

260-acre Hillandale estate returns to market asking $49M

260-acre Hillandale estate returns to market asking $49M
A new study shows the rate at which Black homebuyers are denied mortgages

TRD Insights: Data shows rate Blacks are denied mortgages in 50 US metros

TRD Insights: Data shows rate Blacks are denied mortgages in 50 US metros
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...