Retail space at 1600 Broadway, home to M&M’s World, sells for $190M

Paramount Group scoops up 3-story, 25K sf retail condo from Sherwood Equities

New York /
Dec.December 14, 2021 03:00 PM

Albert Behler, chairman, CEO and president, Paramount Group (Getty Images, Sherwood Equities, iStock)

As tourists slowly return to New York City, concerns surrounding the future of Times Square appear to be melting away.

Paramount Group and an unnamed partner have reached a deal to acquire the retail space at 1600 Broadway from Sherwood Equities for more than $190 million, the Wall Street Journal reported.

The three-story, glass-enclosed space is home to M&M’s World, a 25,000-square-foot candy and gift shop, which will remain in the building on a lease that expires in 2036.

A Cushman and Wakefield team led by Doug Harmon and Adam Spies brokered the deal, according to the Journal. Sherwood had originally aimed to sell the retail condo in 2019, asking $200 million and tapping a CBRE team including Darcy Stacom and Bill Shanahan to market it, but those efforts were scuttled by the pandemic.

The sale comes after a harrowing period for Times Square retailers during the pandemic as travel slowed, office buildings emptied and Broadway went dark. But recent indicators show conditions are starting to improve in the tourism center.

An average of 233,000 people per day visited Times Square in November, according to data from the Times Square Alliance. While that is still 31 percent off the pace seen in 2019, it is more than double the 107,000 per day recorded in November 2020.

Alliance president Tom Harris told the Journal that 77 percent of stores in the area are now open, up from 50 percent in May, though data shared with TRD indicate that retail rents are still well below pre-pandemic levels.

REBNY’s Keith DeCoster told the Journal that vacancies have provided several retailers that previously wouldn’t have been able to afford a Times Square location with the opportunity to sign leases this year.

“I would describe it as heading in the right direction,” DeCoster told the Journal. “Not back to pre-pandemic levels, but headed in that direction.”

[WSJ] — Sasha Jones





    Related Articles

    arrow_forward_ios
    660 Fifth Avenue in Manhattan and Macquarie Group's Shemara Wikramanayake (Brookfield Properties, iStock, Macquarie Group, Illustration by Kevin Cifuentes for The Real Deal)
    Brookfield signs first tenant at 660 Fifth Avenue
    Brookfield signs first tenant at 660 Fifth Avenue
    Major Food Group managing partner Jeff Zalaznick in front of 37 Hudson Yards (Major Food Group, Google Maps)
    Major Food Group bringing members club to Hudson Yards
    Major Food Group bringing members club to Hudson Yards
    A photo illustration of self-storage units (iStock)
    Self storage still rising after pandemic surge
    Self storage still rising after pandemic surge
    Prologis' Heather Belfor (Zoom Info, iStock) Logistics, Warehouses
    Logistics inventory dips to historic low: Prologis
    Logistics inventory dips to historic low: Prologis
    Joseph Chetrit and Larry Gluck with the Yorkshire & Lexington Towers on the Upper East Side (UESMGMT.com, Getty, Gluck Family Foundation)
    Chetrit, Stellar land $714M refi for UES luxury buildings
    Chetrit, Stellar land $714M refi for UES luxury buildings
    Jamestown chairman Christoph Kahl and One Times Square (Jamestown LP, iStock)
    Jamestown lands $425M to bring the metaverse to One Times Square
    Jamestown lands $425M to bring the metaverse to One Times Square
    Patrick Nelson of Nelson Partners Student Housing and the Skyloft Austin (Nelson Partners Student Housing, STG Design, iStock)
    Languishing student housing firm on the hook for $50M
    Languishing student housing firm on the hook for $50M
    Tenants and landlords are in a tug-of-war (iStock)
    Can tenants have it both ways?
    Can tenants have it both ways?
    arrow_forward_ios

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

    Loading...