David Green and C. Bradley Mendelson of Insignia/ESG's retail group represented Boston Properties in arranging the 15-year lease. Laura Pomerantz, John Brod and Mort Schrader of PBS Realty Advisors LLC brokered for Champs. "This deal is an excellent fit," says Pomerantz, "because it pairs a first-class building owner with one of the country's most active national retailers."
Details of the lease have not been released but ground-floor asking rents in the 1.1-million-sf building, located at the southwest corner of Seventh Avenue and 42nd Street, reportedly range from $250 to $300 per sf for large retail deals such as the Champs transaction. Times Square retail spaces under 5,000 sf generally command higher rents with some small corner locations bringing in $800-plus per sf, observers say.
Champs will occupy 5,320 sf on the ground floor and 4,807 sf one flight up. The store is expected to open this fall. Champs Sports is a division of specialty athletic retailer Foot Locker Inc., which operates 3,600 stores in 14 countries. Foot Locker president and CEO Mathew D. Serra calls Times Square "a retail and entertainment mecca" that "also fits with our strategy of targeting urban locations for new store openings."
Industry experts say the deal is a smart move for Champs and a good addition to the area. "Times Square still needs more retail stores," says Garrick-Aug Worldwide Ltd. vice chairman Faith Hope Consolo. "No more theaters, no more theme restaurants, just straight retail. The tourists have seen enough movies, they've eaten enough fast food, now they have to buy stuff to take home. There's so much buying power that's not being utilized."
Consolo adds that the size of the Champs deal will improve its odds for success. "To really make an impact in Times Square you have to have 5,000 sf or more. Small stores get lost. Tower Records, Virgin, Champs Sports, they're more likely to do the sales on a per-sf basis."
Insignia and PBS launched a strategic alliance late last year and this is the second deal the two companies have arranged together in 2002. The first was a 3,200-square foot lease for Anne Klein's flagship in SoHo at 417 Broadway.
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