The Real Deal New York

ICSC: Victoria’s Secret takes 60K sf at 2 Herald Square

By Adam Pincus | May 21, 2013 02:30PM

UPDATED, 7:50 p.m., May 21: Lingerie retailer Victoria’s Secret inked a 60,000-square-foot lease to take two additional floors above its flagship retail location in Herald Square to use as offices, training space and storage.

The store, a division of the Ohio-based public company Limited Brands, signed a lease during the first quarter of 2013 for floors four and five at 2 Herald Square, a 380,000-square-foot office and retail building at the corner of Broadway and 34th Street, owned by Sitt Asset Management, David Sitt, a principal with the firm, told The Real Deal.

The company does not plan to use the floors — each about 30,000 square feet — for selling space, although having the additional stock space should allow the company to merchandise more efficiently, a person familiar with the deal said.

Prior to the new lease, Victoria’s Secret occupied a total of 60,000 square feet on the ground level, lower level and a portion of the second floor on a lease that runs to 2016, with three renewal options of five years each, the source said. The retailer signed the new lease for just 3.5 years, with additional options, so that it expires at the same time as its existing agreement. The asking rent was about $60 per square foot.

Sitt Asset represented itself in the transaction, while Richard Hodos, an executive vice president at CBRE Group, represented the tenant. Hodos and Limited Brands did not immediately respond to a request for comment.

The retailer is taking space formerly occupied by ASA College.

Another major tenant in the building, H&M, occupies the ground, and parts of the second and third floors.