American Eagle Outfitters Inked Leases For Two Adjacent Midtown East Stores Along Lexington Avenue, sources told The Real Deal.
The clothing retailer negotiated and finalized the two 10-year lease deals around the same time, sources said. The retailer’s flagship American Eagle brand will occupy the full two-story, 5,700-square-foot building at 716-718 Lexington Avenue. Meanwhile, American Eagle’s intimate apparel brand Aerie would take the four-story, 7,000-square-foot property next door at 720 Lexington Avenue.
American Eagle plans to connect the two spaces on the ground and second floors prior to opening shop, sources said. The buildings, located at East 58th Street, are two separate structures at the moment.
Ground-floor taking rent for the space at 720 Lex is about $900 per square foot, sources said, while ground-floor rents at the other building remain unclear.
Steve Madden, which has fully occupied 720 Lex since 2007, is slated to move out by the end of the month. The shoe retailer sparred with its building’s owners over the years. The landlords sought to evict Steve Madden in 2013 over unpaid rent. Then, in 2015, Madden sued them over the building’s allegedly crumbling façade and other deteriorating conditions. That suit was settled earlier this month, with Steve Madden agreeing to pay $1.5 million in back rent and vacate five months prior to the lease’s expiration.
Solil Management’s Brett Weinblatt represented the landlord in-house.
Weinblatt and Alex Adjmi declined to comment. Representatives for American Eagle, Crown and Aurora did not respond to requests for comment.
The brick-and-mortar retailer is expanding its presence in the city at a time when some of its competitors are struggling. American Apparel filed for bankruptcy and plans to shut all of its stores. Aeropostale also filed for bankruptcy, but was recently acquired at an auction by Simon Property Group and General Growth Properties.