FAO Schwarz deal crumbles

The iconic toy store remains homeless

1633 Broadway and the old FAO Schwarz
1633 Broadway and the old FAO Schwarz

No deal for FAO Schwarz. The now homeless toy store was just a week away from closing on a new space at Paramount Group’s 2.5-million-square-foot office tower at 1633 Broadway, before it all fell apart.

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A source close to the negotiations told the New York Observer that the 40,000-square-foot space at 1633 Broadway has returned to the market with an asking price of $4 million.

Last month, FAO Schwarz left its longtime home in the General Motors Building at 767 Fifth Avenue. It isn’t yet clear why the lease deal fell apart. [NYO] – Christopher Cameron