Retail Space Trades for More Than $700 Per SF in Sale-Leaseback

NEW YORK CITY-In another retail acquisition here, Vornado Realty Trust has acquired a 35,752-sf site at 692 Broadway for a price between $700 and $800 per sf. Tower Records will lease back the five contiguous retail condominium units for 10 years, with the option to extend for two additional five-year terms.

According to a spokesperson for NAI DG, which handled the deal, Tower’s 692 Broadway location is one of the company’s strongest performing stores. The spokesperson adds that the sale-leaseback arrangement gave Tower “the financial benefit of cash and balance while maintaining a strong presence.”

The NAI DG Hart team of Stephen D. Dadourian, Peter G. Lindner and Sean K. Regan, working in conjunction with the NAI BT Commercial team of Jim Gray and Morgan Walsh represented the seller. Vornado was repped by the NAI DG Hart Corporate Services team of S. Craig Nardi, Gerry McHugh and Joseph J. Pollaci.