Prada Plots Major NYC Expansion With $835 Million Building Deal
Prada is expanding its New York presence with the acquisition of two buildings on New York’s Fifth Avenue.
(Bloomberg) -- Prada is expanding its New York presence with the acquisition of two buildings on New York’s Fifth Avenue.
An entity tied to the Prada family bought 720 Fifth Ave. for roughly $410 million, according to people familiar with the matter. Earlier this week, the Italian fashion brand announced the $425 million purchase of 724 Fifth Ave., the adjacent building that houses its New York flagship store. That filing didn’t mention 720 Fifth.
The combined value of $835 million makes it one of the largest real estate purchases in New York this year.
A spokesperson for Prada didn’t immediately respond to a request for comment. A representative for the seller, an entity owned by developer Jeff Sutton, declined to comment.
Property acquisitions have taken a hit this year as values declined and borrowing costs soared. Still, some companies, including automaker Hyundai Motor Group, have committed to expanding in New York by buying their real estate outright.
Retail sales in the US are staying strong amid a global slowdown in demand for luxury goods. In its filing this week, Prada said the building housing its Fifth Avenue flagship offers high strategic value after an influx of residential, hospitality and retail investments in the neighborhood. It will continue to use the space in that property for its store, offices and storage, according to the filing.
Will Silverman, the Eastdil Secured managing director who brokered the deal, declined to comment on the purchase of 720 Fifth.
“The global competition for the most prime luxury corners has reached New York City,” Silverman said. “There are more global luxury brands than there are prime corners left on Fifth Avenue.”
(Updates with total deal value in third paragraph.)
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