Armani Exchange grabs 10K sf retail sublease in Soho

Six-year deal at Michael Shvo’s 536 Broadway is with tenant Ralph Lauren

536 Broadway (Google Maps)
536 Broadway (Google Maps)

A|X Armani Exchange is returning to Soho at 536 Broadway, taking nearly 10,000 square feet.

The two-story space is being subleased from Ralph Lauren, which shuttered the Club Monaco at the space upon selling the brand in May 2021. The fashion brand, founded by the former Ralph Reuben Lifshitz in 1967, has roughly eight years left on its lease at the Soho location, which is at the base of 530 Broadway.

Ralph Lauren was represented in the deal by Gene Spiegelman of Ripco Real Estate while Armani was represented by Bob Gibson of JLL. The brokers declined to comment.

The sublease runs through March 2029 and includes 5,447 square feet on the ground floor and 4,439 on the lower level.

The building is owned by Michael Shvo and partners, who bought it for $382 million from retail heavyweights Jeff Sutton and Joe Sitt as the pandemic began in 2020. Snarkitecture, one of the office tenants, has designed a new lobby for the property.

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As the pandemic progressed, Shvo tried to evict Club Monaco, alleging late rent payments, but the parties worked it out. The rent was $4.9 million per year at the time, according to Shvo’s lawsuit, and was scheduled to rise to $6 million by the end of the term.

A|X Armani Exchange’s rent at 536 Broadway could not be ascertained, but subletting tenants typically pay far less than the original tenant. Sources said the asking rent was around $3 million per year, or $300 per square foot.

The original A|X Armani Exchange opened in Soho at 568 Broadway in 1991 and was renovated in 2013 but has since closed.

Upon shutting the Club Monaco location, Ralph Lauren remained on the hook for the lease at 536 Broadway, just as it did upon closing its store at 711 Fifth Avenue, coincidentally also owned by Shvo.

At the latter address, Ralph Lauren subleased the storefront to Mango in November 2020, triggering a legal battle with Shvo and his co-owners, who did not consider the fast-fashion chain Mango to be an appropriate tenant for the 28,300-square foot, prime retail space.