Zara parent breaks Soho record with $20,000 psf retail condo

Price is a third larger than previous high set a year ago

New York /
Jan.January 08, 2015 01:05 PM

Aside from its eye-popping $280 million price tag, mondo clothier Inditex’s impending purchase of a retail condo on Broadway in Soho will break the neighborhood’s retail record with a price tag of more than $20,000 per square foot.

The international fashion corporation, which is the parent company of Zara, signed a contract to pay $20,588 a foot for the 13,600-square-foot ground floor of a newly created retail condo at 503 Broadway.

News of the sale was first reported by the New York Post. The deal is expected to close Tuesday.

The space will be home to a Zara store, and includes an additional 27,588 square feet on the second floor and in the cellar.

The deal, negotiated on both sides by David Ash of Prince Realty Advisors, works out to a per-square-foot price that is more than a third larger than the previous record set a year ago.

In January 2014, Aurora Capital Associates paid $15,273 per square foot to purchase a 2,750 square-foot retail condo at 114 Prince Street for $42 million. That deal was negotiated by Eastdil Secured’s Adam Spies, Adam Doneger and Doug Harmon.

Of the Inditex deal, Ash said it was a complicated affair that first started out in 2011 with the company interested in a long-term lease.

During negotiations, he suggested building owner HSR Corp. consider creating a retail condo, which required Inditex to buy out tenant Old Navy’s lease that ran through 2018.

“Zara is a publicly traded entity that values its flagship retail locations in New York City and other major cities across the U.S.,” Ash said. “They’re not particularly purchasers of a lot of different condos, but when it came time to look at Soho . . . . This is such a unique space and fit. It made sense to dictate their own future. That’s why they were willing to pay the price they paid.”

 

Related Articles

arrow_forward_ios
The tax break allows foreign visitors to reclaim a sales tax of 20 percent on items bought in the country for more than £30 (Getty; Unsplash)

UK tax break expiration could hurt struggling retailers

UK tax break expiration could hurt struggling retailers
Istanye Park in Istanbul (Photo via Wikipedia Commons)

Turkish mall valued at $1B in deal with Qatar

Turkish mall valued at $1B in deal with Qatar
258 8th Avenue (Google, Target)

Target planning yet another NYC store in Chelsea

Target planning yet another NYC store in Chelsea
Union Square Hospitality Group CEO Danny Meyer and the Union Square Cafe (Photos via Getty; Wikipedia Commons)

Danny Meyer’s Union Square Hospitality halts indoor, outdoor dining

Danny Meyer’s Union Square Hospitality halts indoor, outdoor dining
From top: Park Place Mall in Tucson, AZ with Brookfield Property Partners CEO Brian Kingston; Westfield Countryside in Clearwater, FL with Unibail-Rodamco-Westfield CEO Christophe Cuvillier; and The Mall at Tuttle Crossing in Dublin, OH with Simon Property Group CEO David Simon (Google Maps, Westfield, Simon, Getty)

These are the biggest malls landlords ready to hand over to CMBS lenders

These are the biggest malls landlords ready to hand over to CMBS lenders
An analysis of data from CoStar found that retailers nationwide had missed two to four months’ rent (iStock)

Retailers now owe $52B in back rent

Retailers now owe $52B in back rent
Macy’s CEO Jeff Gennette (Getty; iStock)

Macy’s experiments with “dark stores”

Macy’s experiments with “dark stores”
Macerich’s Queens Center Mall (Photo via Macerich)

Macerich’s Queens Center Mall emerges from special servicing

Macerich’s Queens Center Mall emerges from special servicing
arrow_forward_ios

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

Loading...