Real Estate New York,
Lease terms were not disclosed; rents are reportedly in the $400 per square foot range. Scott Meden, president of Nordstrom Rack, says in a release that the former Virgin site is "a rare opportunity that opened at the right time for us. Union Square is a thriving retail area and is an ideal location for the city's first Rack." With 30 feet of storefront, it will occupy the ground-floor level of the former Virgin site, which closed for business in June.
Nordstrom Rack carries merchandise from Nordstrom stores and Nordstrom.com at discounts of 50% to 60% off original Nordstrom prices. In the tri-state area, the company currently operates eight Nordstrom stores and three Nordstrom Racks.
In a statement, Related president Jeff T. Blau says "Nordstrom is one of the nation's leading fashion retailers and we are delighted that they have chosen Union Square, one of New York City's most desirable commercial destinations for their first Manhattan Nordstrom Rack store. Related has played a key role in the revitalization of Union Square for over a decade and we are proud to continue to contribute to the transformation of the area."
Along with One Union Sq. South, Related's presence in the neighborhood encompasses the Sierra Building on West 15th Street, the Century Building on 17th Street and the W Union Square Hotel on Park Avenue South. In addition, Blau serves on the board of directors of the Union Square Partnership.
Jennifer Falk, executive director of the USP, says in a statement that "Nordstrom Rack and Best Buy are a perfect complement to the district, which has seen an increase in pedestrian traffic by 59% over the past five years and more than 35.5 million riders who used our subway stations this past year." Nordstrom Rack will be making its Manhattan debut when it opens at Union Square.
Falks adds that along with "the jobs that Nordstrom as well as Best Buy will bring to the area, the leasing of the retail space at One Union Sq. South will ensure that the retail blocks surrounding the park remain as popular as ever." The Best Buy is scheduled to open in the fourth quarter of this year, according to published reports.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
