NEW YORK CITY-Thor Equities has apparently emerged as the winner in a bidding war for the Takashimaya Building at 693 Fifth Ave. Following earlier reports that the owner/developer had become the front runner to take possession of the mixed-use property, the New York Post said Wednesday morning that Thor had placed a winning bid for slightly more than $140 million. GlobeSt.com’s calls to Thor and to Takashimaya, which owns the 20-story property that houses its Manhattan retail location, were not returned by deadline.
At 97,500 square feet, 693 Fifth has reportedly fetched $1,450 per square foot. Takashimaya occupies about 37,000 square feet of the property with retail space and offices. It has occupied the space since 1993, although its Manhattan retail presence dates back to 1958.
Japan-based Takashimaya announced in March that it would be closing the Manhattan location, after a planned merger with H2O Retailing Corp. fell through. The company has also shuttered six stores in Japan in recent months.
According to earlier reports in the Post and Crain’s New York Business, Swiss watch retailer Swatch was in the running to take over 693 Fifth, possibly occupying all 20 floors. Swatch was the only retailer among the top contenders, although some of the other reported finalists—including Thor and Vornado Realty Trust—have substantial retail holdings.
If accurate, the $140-million selling price fits in with other recent examples of property sales that came in above estimates. For example, SL Green Realty Corp.’s April purchase of the office tower at
600 Lexington Ave. was initially reported at $180 million but came in at $193 million. The REIT later sold a 45% ownership stake in 600 Lexington to the Canada Pension Plan Investment Board for $87 million.
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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.
