Two of the world’s most visible clothing retailers are involved in a Midtown property transaction, with an entity affiliated with H&M chairman Stefan Persson acquiring a prime Fifth Avenue building from the Benetton Group for $137 million.
The six-story building, at 601 Fifth Avenue, houses the United Colors of Benetton’s only Manhattan store. The property has been in the Benetton family for decades and is located less than a block from where H&M opened its largest global store last year.
It is not immediately clear whether Benetton’s location on the ground floors of the 12,420-square-foot building would close as a result of the deal, according to the New York Daily News.
Treviso, Italy-based Benetton opened its store at 601 Fifth Avenue in 2002. Retail values on the Fifth Avenue corridor have skyrocketed since – with space between 42nd and 49th streets climbing 17 percent over the last year to $1,200 per square foot, according to the Real Estate Board of New York.
H&M sued the landlord of its new flagship Herald Center store for more than $11 million earlier this year, claiming work on the location’s façade ran contrary to the lease agreement. [NYDN] – Rey Mashayekhi