Vornado Realty Belief has introduced that its 52 % owned avenue retail three way partnership has agreed to promote a portion of UNIQLO’s U.S. flagship retailer at 666 Fifth Ave., in Midtown Manhattan for $350 million.
The Japanese clothes firm will purchase 17,295 sq. ft of its 90,732-square-foot retailer, whereas Vornado’s three way partnership will proceed to personal the 23,832 sq. ft occupied by Abercrombie & Fitch and Tissot shops on the location.
Eastdil Secured offered advisory providers to Vornado’s avenue retail three way partnership. The sale is predicted to shut by the primary quarter of 2025, pending customary closing situations and UNIQLO’s separate transaction with the workplace condominium proprietor.
The anticipated $340 million in internet proceeds from the sale will likely be utilized to partially pay down Vornado’s $390 million most popular fairness stake within the asset. When the transaction is finalized, the pass-through leases between the workplace condominium proprietor and the retail three way partnership will come to an finish.
Final yr, Vornado Realty Belief entered into an settlement to promote 4 downtown Manhattan retail buildings, encompassing 123,000 sq. ft. The corporate additionally offered a fifth retail asset in a separate deal, with the entire gross sales value for each transactions amounting to $124.4 million.
Manhattan’s retail scene
The Manhattan retail market remained resilient within the second quarter of the yr resulting from regular new leasing exercise and tenant growth necessities. The retail availability price held regular ultimately quarter’s 14.1 %, the bottom price in 9 years, based on a current Cushman & Wakefield report.
Availability alongside Decrease Fifth Avenue between forty second and forty ninth Streets dropped to 14.8 %, the bottom price since 2012. The biggest lease within the space was for GU, Uniqlo’s sister model, securing 24,330 sq. ft at 510 Fifth Avenue, the identical supply exhibits.
