Saadia Group, Lord & Taylor’s new owner, has found a new office in Midtown.
The investment firm, which acquired Lord & Taylor and New York & Company in a bankruptcy auction, will operate the brands as an e-commerce business out of its new 275 Madison Avenue headquarters, according to Crain’s.
It’s not a direct lease with the building owner, RPW Group: Cushman & Wakefield is subletting the 41,000-square-foot space to Saadia.
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As part of the deal, Saadia inherited Cushman’s furniture and equipment. It also received a 30 percent discount on the building’s direct pricing, according to Gabe Marans, a broker at Savills.
“New York City is an integral part of the brand DNA for both Lord & Taylor and New York & Company,” Jack Saadia, principal and co-founder of Saadia Group, told the publication. “This office space will provide our teams with a collaborative and safe working environment that will ultimately lead to growth and expansion across our network of brands.”
The space will look nothing like Lord & Taylor’s previous 660,000-square-foot flagship on Fifth Avenue. Instead, the office will be used as a showroom and for administrative staff.
Though Cushman put its office space on the market prior to the pandemic, the market has since spiraled as more companies embrace the cost-savings associated with remote work.
Office availability hit 15.5 percent in February, the worst on record, according to Colliers International’s monthly market snapshot. And tenants have been increasingly putting their offices up for sublet since June.
[Crain’s] — Sasha Jones