H&M Union Square deal falls through: Sources
Swedish clothing retailer H&M’s long-rumored lease in Union Square — which was close to closing, according to insiders — has stalled and may be abandoned, industry sources said. The discount designer was close to a deal for several floors in a 32,000-square-foot space at Feil Organization’s 853 Broadway, on the corner of 14th Street, as The Real Deal reported in June.
And as recently as this week, Feil representatives said the deal was expected to close imminently, several industry sources said. However, today Feil relisted the space, according to marketing materials obtained by TRD.
One broker not involved in the deal said the lease appeared to be tentative all along, but he declined to speak on the record, but others thought it was virtually a done deal.
Calls to the Feil Organization and H&M were not immediately returned.
H&M has its hands full with three other major new leases in Manhattan, including at 589 Fifth Avenue, at 48th Street, totaling 57,000 square feet. That deal to replace its space at 640 Fifth Avenue was announced in August 2012. The new store is not yet complete, although it was originally slated to open this year.
The company also inked deals in 2012 for a Times Square location at 1472 Broadway, which opened in November as the largest H&M in the world. In addition, in August the company inked a 63,000 square foot deal at 1311 Broadway in Herald Square.