As the coronavirus crisis puts a damper on real estate dealmaking in the city, Italian food hall Eataly has recently been in talks to set up a new gourmet emporium at the site of the Barneys flagship at 660 Madison Avenue, the New York Post reported.
Barneys, which filed for Chapter 11 bankruptcy in August, struck a deal with landlord Ashkenazy Acquisition Corporation in November to keep the flagship open for at least 12 months with a reduced footprint. Eataly could take up to 40,000 square feet of the space vacated by Barneys.
Rent increases played a major role in Barneys’ decision to declare bankruptcy. In 2018, a city arbitrator gave Ashkenazy the go-ahead to nearly double the rent on the 275,000-square-foot space from $16 million a year to $30 million.
Eataly currently has two locations in New York City, at 4 World Trade Center in Lower Manhattan and 200 Fifth Avenue in the Flatiron District. The restaurants and counters at these locations are closed in accordance with government guidance, while the grocery stores remain open for business. [NYP] — Kevin Sun