DKNY Midtown headquarters hits market for $65M
Fashion label Donna Karan New York’s headquarters space hit the block with a $65 million asking price, Crain’s reported. Located at 240 West 40th Street between Seventh and Eighth avenues, the 150,000-square-foot property is being marketed by Richard Baxter, Scott Latham and Glenn Tolchin of Jones Lang LaSalle.
There is a hitch, however: DKNY’s lease expires in 2016, and there’s no word on whether the company would stay or not. A DKNY spokesperson did not respond to Crain’s request for comment. An unnamed source told Crain’s that DKNY might be reluctant to move after investing in its office and showroom spaces.Massey Knakal Chairman Bob Knakal, who is not involved in the sale, told Crain’s that the benefit of a vacancy would depend on the strength of the leasing market. “If a buyer wanted to reposition the property to say a hotel, however, to be able to empty the whole building would be considered a positive,” he said.
The property, which stands 12 stories high, is owned by a partnership led by Sitt Asset Management. DKNY fully occupies the office space throughout the building. The ground floor houses Dunkin’ Donuts, Popeye’s and Guy & Gallard locations. [Crain’s] — Zachary Kussin