NEW YORK CITY — Spanish retail giant Inditex Group has acquired a Fifth Avenue retail condominium for a whopping $324 million. The 38,750-square-foot condo, which is located at 666 Fifth Ave., traded for $8,361 per square foot — reportedly one of the highest prices ever paid for retail space in the United States. The seller was a joint venture between The Caryle Group and Crown Acquisitions, which purchased the entire 90,000-square-foot retail portion of the building from Cushner Cos. in 2008 for $525 million.
With the condo's prime location, it is easy to see why it could fetch such a steep price. It is located near Rockefeller Center, the Museum of Modern Art and St. Patrick's Cathedral. It is on the same block as the flagship stores for Uniqlo and Hollister.
New York-based real estate investment banking firm Savills helped arranged the deal on behalf of Inditex. The transaction included negotiating an early lease termination for the condo's tenant, the NBA Store, so Inditex could bring its apparel brand Zara into the location.
“There is no better retail in Manhattan and our client has reinforced this through their acquisition,” said Borja Sierra, CEO of Savills Europe, in a statement. “Rather than committing to a $300 million, long-term lease, our client has clearly endorsed the Fifth Avenue shopping district by demonstrating it is prepared to maintain long-term ownership on the street.”
Inditex group is one of the world's largest fashion retailers. Its brands include Zara, Zara Home, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and Uterqüe. The first Zara opened in A Coruña, Spain in 1975. There are currently seven locations in New York City including three on Fifth Avenue.
— Coleman Wood