The largest retail deal in Manhattan, New York, is made recently as the commercial property located at 666 Fifth Avenue was sold to Inditex, a Spanish corporation, and one of the world’s largest fashion groups, for about $324 million. According to Real Capital Analytics, the commercial property was sold for $8,361 per square foot, a record breaker for the former largest transaction made in the city for $6,000-square-foot retail.
Recently, another multi-million transaction was made by Realty Income Corporation for acquiring 33 commercial properties $544 million. The commercial properties, according to a report, are located in 17 different states across the U.S.
The company will transform the 39,000 square feet commercial property into its U.S flagship store for its Zara fashion retail chain. There are seven Zara retail stores in Manhattan and about 1500 stores across the globe.
Previously, the commercial property is home to the National Basketball Association or NBA, which is also surrounded by H&M, Hollister, Abercrombie and Fitch, and Uniqlo retail stores.
According to Savills executive director, who represented Inditex in the transaction, Borja Sierra, acquiring rather than leasing the commercial property sounds surprising for a retailer, but the recent Fifth Avenue rates and the current high prices as well the increases equals to acquiring a 15 year leasing contract on that area.
Inditex acquired the commercial property from the joint venture between Crown Acquisitions and Carlyle Group, which is represented by Haim Chera, a NYC retail investor.
The commercial property is situated at 666 Fifth Avenue, between the Rockefeller Center, St Patrick’s Cathedral, and the Museum of Modern Art (MoMA).