Tiffany & Co. extends lease in Flatiron neighborhood
Tiffany & Co. plans to retain its global headquarters at 200 Fifth Ave. for a long time yet. Although he reduced his space to 287,000 square feet from just over 400,000 — the kind of pruning many companies do — his most significant step was to extend his lease for another 10 years.
The extended engagement, reported here for the first time, reaffirms owner L&L Holding Co.’s success in running the historic 1909 building, which L&L purchased in nearly ruined condition for $480 million, through an estate of challenges. They included the fallout from the Great Recession, the shocking loss of a financial partner and the last-minute collapse of a major lease.
Throughout the odyssey, L&L founders David W. Levinson and Robert Lapidus managed to keep the property on track. They landed Tiffany and Gray Global Group as office tenants and Italian food hall Eataly – then unknown in the United States – as a retail anchor. IMG is also a small office tenant.
Tiffany’s extended lease runs until 2036. Terms were not available, but a source said they included triple-figure rent and a “nominal” concession package.
Tiffany’s downsizing leaves just 57,691 square feet up for grabs on the 800,000 square foot site – the first office availability since L&L completed a $135 million capital upgrade program there a few years ago.
Levinson and L&L Executive Vice President David C. Berkey represented the property internally. Savills’ Greg Taubin and Matthew Barlow acted for Tiffany.
Meanwhile, the restoration and expansion of the jeweler’s flagship store at 727 Fifth Ave. seems to be in the final stretch. A three story addition above is now clearly visible. There’s no official word yet when Tiffany will return after subleasing the neighboring former Niketown at 6 E. 57th St., owned by Trump, as a temporary home since 2018.
The curtain fell very softly on the Pergola des Artistes, one of the few bistros in the theater district that recalls the days when French sailors strolled for beef bourguignon and Bourdeaux wine after disembarking from passenger ships on the West Side docks.
The time-honoured haunt of 252 W. 46th St., fondly remembered for its white tablecloths, red linen napkins and honest French cuisine, is sandwiched between the Imperial Theater and a vacant lot slated for development.
The restaurant closed “temporarily” during the pandemic but will not reopen. It belonged to the family of Christian Ponsolle who also owns the four-storey building. The Pergola space is now on the market via Louis Puopolo, Matthew Leto and Bradford Siderow of Douglas Elliman Commercial. Puopolo said a new tenant could be announced soon.
The ups and downs of glamorous malls like the World Trade Center and Deutsche Bank Center constantly attract media attention. Meanwhile, some open-air retail complexes in less glamorous parts of town are receiving little praise despite thriving in plain sight.
Among them: The Shops at Marble Hill in the Bronx, formerly known as River Plaza. The 240,000-square-foot midscale shopping mecca at the foot of the elevated West 225th Street No. 1 train station is seen as the hub of the borough’s Broadway corridor resurgence.
In a struggling retail environment, Marble Hill stores are remarkably 100% leased. New deals were recently signed for nearly 11,000 square feet – for Foot Locker, Sally Beauty and MedRite and for a relocation of Applebee to the resort.
The property has been anchored by Target since 2004. Other tenants include Marshalls, City Jeans, Planet Fitness and T-Mobile. The owner is Kingsbridge Associates, a partnership of Curbcut Realty, Kessler-Sachs Family Partnership, James Levin and Washington Square Partners.
Paul Travis, managing partner of Washington Square, said the Marble Hill complex is in the top 5% of consumer traffic for all malls in the city.
Asking rents were $95 per square foot.