Qatari luxury shop looking to sublease space on Madison

"Gold Coast" store sits empty after Qela signed pricey lease last year

TRD New York /
Sep.September 03, 2015 02:20 PM

Qatari fashion brand Qela’s retail store on the Upper East Side’s “Gold Coast” remains empty more than a year after it inked a deal that cost an arm, a leg and a few diamond-encrusted handbags. And now the haute couture company is quietly shopping around a sublease for the space.

The Qatar Luxury Group, a subsidiary of the Qatari ruling family’s nonprofit arm, launched the high-end fashion brand Qela back in 2013, with hopes of placing Qela in the pantheon of Hermes, Dior and Dolce & Gabbana.

The design firm signed a lease early last year for 6,200 square feet across two levels of Thor Equities’ 680 Madison Avenue, the former Helmsley Carlton Hotel.

Quela paid about $2,000 per square foot for the ground-floor space, making the deal one of the most expensive leases of the year.

The transaction earned the high-end retailer’s broker, CBRE vice chairman Richard Hodos, a nomination for the Real Estate Board of New York’s Most Ingenious Deal of the Year Award.

While Qela successfully opened its doors in Doha, Qatar, The Store On Madison Avenue sits empty, and now Hodos is shopping the space around on the sublease market, sources told The Real Deal. A spokesperson for CBRE declined to comment.

As with most of the city’s premier shopping districts, retail rents on Upper Madison Avenue have climbed terrifically over the past several years. But that growth appeared to cool a bit over the past year, with asking rents between 57th Street and 72nd Street growing a modest 3 percent on the year, to an average of $1,700 per square foot, according to REBNY’s spring retail report.

After the Qela deal, Thor signed eyewear-designer Morgenthal Frederics to a 650-square-foot boutique shop and the suit-maker Brioni to 7,000 square feet.

Joe Sitt’s company purchased the retail condo stretching the full block on Madison between East 61st and East 62nd streets for $277 million in 2013, which was one of the highest prices ever paid for retail on the shopping strip.


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
(Credit: iStock)

Loophole allowed big-name landlords to get bailout funds

Loophole allowed big-name landlords to get bailout funds
Scott Mollen and 45 Park Place (45 Park Place; Herrick)

Cultural center linked to El-Gamal fights against 45 Park foreclosure

Cultural center linked to El-Gamal fights against 45 Park foreclosure
From left: Mapleton Rentals at at 1555-1575 61st Street in Mapleton, 1440 Story Avenue in Soundview, Beard-Van Brunt at 411 Van Brunt Street in Red Hook

Abraham Leser targets $74M refi for Brooklyn, Bronx properties

Abraham Leser targets $74M refi for Brooklyn, Bronx properties
the 2 Waterline Square condo and 173 Perry Street #4N (Credit: Corcoran, Realtor)

Outdoor space seals deal in tough luxury market

Outdoor space seals deal in tough luxury market
84 Putnam Ave and 308 N 7th Street in Brooklyn (Google Maps; 308n7)

Brooklyn luxury home sales remain 80% below last year

Brooklyn luxury home sales remain 80% below last year
arrow_forward_ios

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

Loading...