Nordstrom Inc. will be docking its flagship store in New York City sometime in 2018. The Seattle-based fashion retailer has acquired the first seven floors, about 285,000 square feet, of Extell Development's proposed 88-story residential condominium at 225 W. 57 St. for $102.5 million.
The complicated large-scale project, at the corner of 57th Street and Broadway, is being orchestrated by Extell and founder Gary Barnett. The development group is also the creator of One57, another unique residential building at 157 W. 57th St.
"This is a terrific opportunity for us to open our best store in the very best retail market," a spokesman from Nordstrom's public relations office said in an interview. The search took a very long time and Nordstrom is excited to work with Extell, he said.
Several other adjacent land parcels/buildings at 217 W. 57th St.; 223 W. 58th St. and 1780 Broadway have been purchased by the developer, according to media reports.
Bruce DePaola, a partner at Paul Hastings, and associate Heather Lockhart, represented Nordstrom.
Ronald Sernau, a partner at Proskauer Rose and cochair of the firm's real estate department, represented Extell.
Nordstrom acquired a fee title to the portion of the building that encompasses the first seven floors at 225 W. 57th St., including five floors above grade and two below grade, DePaola said. The development group did not comment on the details or the scope of the project, which reportedly includes a hotel and more than 200 residential units. Nordstrom's retail portion will contain several different shopping venues with access from Broadway, 57th and 58th Streets.
"We intend to be on our game since we have a chance to build a new store with size and a layout to work for us in Manhattan," Nordstrom's spokesman said.
Nordstrom, first established as Wallin & Nordstrom in 1901 as a Seattle shoe store, has evolved into one of the nation's leading fashion specialty retailers.
It has 247 stores across 33 states, including Nordstrom Rack and full-line stores and Jeffrey boutiques and provides a range of services through www.nordstrom.com. There are more than a half a dozen stores positioned in the New York Metro area, including Nordstrom's Rack at Union Square and other stores in Garden City, White Plains, Huntington Station and Paramus, N.J. Two new Nordstrom Racks will be opening next year in Brooklyn on Fulton Street and Manhasset with another planned in Syosset.
Founded by Barnett in 1989, Extell has a portfolio exceeding 20 million square feet of residential, commercial, retail, hospitality and mixed-use properties primarily in Manhattan and other urban areas, according to its website.
Derek Trulson, a managing director at Jones Lang LaSalle, handled the deal on behalf of Nordstrom. Extell was advised by Robert Futterman, founder and chairman of RKF.
The New York State Department of Motor Vehicles will have a new service facility in Manhattan at 21 Penn Plaza. The agency and its 45 staff members will be relocating from the Herald Center facility, at 1293-1311 Broadway.
The DMV has a new 10-year lease for 27,455 square feet at 21 Penn Plaza, at 31st Street and Ninth Avenue, with the joint venture of The Feil Organization and Savanna.
The DMV sought a landlord that could demonstrate an "ability to meet the needs of DMV customers" as well as "handle the large traffic flow," said Heather Groller, a spokeswoman for the New York State Office of General Services (OGS) in Albany.
Feil was represented in-house by Brian Palumbo and Michele Frankel, legal counsels.
Michele Reale, an associate attorney at the Office of General Services, was part of a team representing the DMV.
The DMV's new service facility, expected to open spring 2014, will occupy about 26,070 square feet on the second floor as well as 1,385 square feet of retail space on the first floor with a private entrance.
"In essence, this part of 21 Penn Plaza is a building within a building," David Turino, Feil's director of commercial leasing, said in a statement. "The private entrance allows the DMV its own identity separate from the office tenant population utilizing the Ninth Avenue and 31st Street lobbies."
The Penn Plaza office building has 17 floors with more than 346,800 square feet of office space and 12,786 square feet of retail space. The asking rate for office space at the class-B property is in the mid-to-high $40s per square foot and for retail between $100 and $120 per square foot. The rates do not reflect the terms of the DMV lease which were undisclosed. The building currently is 93 percent occupied.
Other DMV Manhattan locations include 11 Greenwich St., 300 W. 34th St. and 159 E. 125th St., according to its website.
The Feil Organization has a nationwide portfolio of more than 26 million square feet of retail and commercial space and over 5,000 residential rental units.
Savanna, an institutional real estate private equity firm and asset company since 1998, is focused on directly owning and operating properties in New York City, the Washington, D.C. metro area, and Boston, pursuing other investment opportunities throughout northeastern United States.
David Turino, director of leasing at The Feil Organization, internally handled the lease. Paula Mirabile, a leasing agent at NYS OGS, acted on behalf of the DMV. Jeffrey Rosenblatt, a senior managing director at Newmark Grubb Knight Frank, also assisted the tenant.
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