Zara’s Spanish parent Inditex Group prepares for $250M Soho deal

TRD New York /
Nov.November 28, 2012 10:30 AM

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


Related Articles

arrow_forward_ios
144-06 88th Avenue in Queens and Attorney General Letitia James (Google Maps; James byErik McGregor/LightRocket via Getty Images)

Judge denies Zara Realty’s bid to dismiss AG lawsuit

Judge denies Zara Realty’s bid to dismiss AG lawsuit
Zara Realty hit with suit from AG alleging tenant harassment, rent-stabilization violations

Zara Realty hit with suit from AG alleging tenant harassment, rent-stabilization violations

Zara Realty hit with suit from AG alleging tenant harassment, rent-stabilization violations
Treetop Development sells Elmhurst rental complex for $57M

Treetop Development sells Elmhurst rental complex for $57M

Treetop Development sells Elmhurst rental complex for $57M
Zara Realty picks up two more resi buildings in Jamaica for $20M

Zara Realty picks up two more resi buildings in Jamaica for $20M

Zara Realty picks up two more resi buildings in Jamaica for $20M
Lawsuit alleges Zara Realty threatened undocumented tenants with Feds

Lawsuit alleges Zara Realty threatened undocumented tenants with Feds

Lawsuit alleges Zara Realty threatened undocumented tenants with Feds
Zara Realty picks up Jamaica multifamily portfolio for $21.5M

Zara Realty picks up Jamaica multifamily portfolio for $21.5M

Zara Realty picks up Jamaica multifamily portfolio for $21.5M
Persistence pays off for “Ingenious Deal” nominee David Ash

Persistence pays off for “Ingenious Deal” nominee David Ash

Persistence pays off for “Ingenious Deal” nominee David Ash
490 Broadway Amancio Ortega thumb

Amancio Ortega’s Ponte Gadea buys 490 Broadway for $145M

Amancio Ortega’s Ponte Gadea buys 490 Broadway for $145M
arrow_forward_ios

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

Loading...