Savills brokers New York's largest retail condominium deal for Zara flagship

Spanish retailer Inditex SA (ITX), represented by Savills, has acquired the former NBA Store at 666 Fifth Ave. in Manhattan for $324 million, in a record deal for a U.S. retail condominium property. 
 
One of the world's largest retailers, Inditex will transform the 39,000 sq ft (3,600 sq m) property into its US flagship store for Zara clothing chain. Located between West 52nd and 53rd streets the retail unit was formerly the home of a National Basketball Association store and surrounded by US flagship stores of Uniqlo, Abercrombie and Fitch, Hollister and H&M. 

Borja Sierra, executive director of Savills who represented Inditex, says: "Buying rather than leasing might sound surprising for a retailer but with Fifth Avenue rents at current high prices and rising it equates to acquiring a 15 year lease on that pitch. The difference being that Inditex will own one of the best pieces of real estate in the world at the end of that time period.  This is the kind of investment you would make with your grandmothers inheritance – it's an exceptional long term opportunity."
 
The retail condominium of 666 Fifth Avenue, the original Tishman Building, is situated between the Rockefeller Center, the Museum of Modern Art (MoMA), and St. Patrick's Cathedral – one of the highest footfall pitches in the world. The vendor is a JV between Carlyle Group and Crown Acquisitions, represented by New York based retail investor Haim Chera.