FAO Schwarz close to deal for new store at Paramount Plaza

FAO Schwarz is close to committing to move its flagship store to a new, smaller space north of Times Square after it vacates its current location at the GM Building next month.

The iconic toy store is set to open its new space at the base of Paramount Group’s 2.5 million-square-foot office tower at 1633 Broadway in time for Christmas 2016. FAO will occupy 40,000 square feet across two levels below ground, with shoppers entering the store through a 733-square-foot glass cube – inspired by the Apple store’s location at the GM Building – on West 51st Street.

FAO’s lease at the new space will be for 15 years, with asking rent at $4 million a year, according to the New York Observer.

The toy store will leave the GM Building, at 767 Fifth Avenue in Midtown, on July 15. The retailer negotiated with landlord Boston Properties to expedite its departure from the 60,000-square-foot space, which it has occupied for nearly 30 years. FAO is reportedly shelling $15.6 million a year for the GM Building location. [NYO] – Rey Mashayekhi