Eataly’s plans for global expansion appear to be starting in Soho.
The Italian grocery and gourmet dining destination signed a lease for 18,000 square feet at Brookfield Properties’ 200 Lafayette Street, the New York Post reported. The lease includes the ground floor and floors beneath street level.
The asking rent for the space was $2.7 million per year. Brookfield told the outlet it provided a multimillion-dollar tenant improvement allowance, cutting down on the net Eataly will pay for the space.
The lease also comes with flagpole signage for Eataly, which isn’t expected to open until mid-2023 as it builds out the space.
CBRE’s Joel Stephen represented Eataly in the lease. Jason Maurer represented Brookfield Properties in-house with an assist from a Cushman & Wakefield team led by Michael O’Neill.
Oscar Farinetti founded Italy-based Eataly in 2003. The company has several locations in New York City, including one at 200 Fifth Avenue, complete with a beer garden, and another at 4 World Trade Center.
The company last month sold a majority stake to Investindustrial for approximately $200 million saying at the time the investment came with the goal of international expansion. At the time of the deal, the chain had 44 locations, including eight in the United States.
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The retail space in the 130,000-square-foot Soho building has not seen much activity recently, despite a capital improvement project that helped fill the upper floors with office tenants. The 1896-built property has also been through a series of frequent ownership changes.
The Zaccaro family purchased the property in 2006 for $20 million. Six years later, Jared Kushner and CIM swooped in, buying it for $50 million. By the next year, General Growth Properties paid $148.8 million for the building.
In 2015, GGP put the office portion of the building up for sale, intending to hang on to the retail space. That proved irrelevant in 2018, when Brookfield took over GGP in a $9 billion acquisition, assuming ownership of the property.
— Holden Walter-Warner