The world-renowned company is buying part of the building housing its New York City flagship on Fifth Avenue.
Vornado Realty Trust said that its 52 per cent-owned retail joint venture has entered into an agreement to sell the Japanese clothing giant a portion of its US flagship store at 666 Fifth Ave. in Midtown Manhattan that is owned by the joint venture for $350M.
The joint venture owns the fee condominium interest in 17,295sq ft (with 6,477sq ft at grade level) of Uniqlo’s 90,732sq ft store. In conjunction with the closing, the pass-through leases between the office condominium owner and the retail joint venture will be terminated.
The joint venture will continue to own 23,832sq ft of retail space (with 7,416sq ft at grade level) at the site, consisting of the Abercrombie & Fitch and Tissot stores. All of the estimated $340M of net proceeds from the sale are expected to be used to partially repay Vornado’s $390M of preferred equity on the asset.
