NEW YORK CITY-In an UPDATE to a report this morning, Extell has issued a statement on the Nordstrom purchase of the developer's property at 225 W. 57th St.
The statement reads: Extell and Nordstrom announced today that the high-end retailer is one step closer to bringing its first full-line store to New York City. The new flagship department store will comprise approximately 285,000 square feet at the base of a mixed-use, retail, hotel and high-rise residential tower still in its planning stages.
The department store will occupy seven floors, with street-level entrances on West 58th street, West 57th street, and Broadway. Nordstrom purchased the fee below a plane from Extell, for an initial down payment of $102.5 million, with the remainder of the payments to be made in installments over time. Once complete, Nordstrom will assume a condominium form of ownership of the store. Extell has also successfully secured a new $300M land loan with Blackstone to replace an existing land loan with HSBC.
Additionally, Extell recently completed the assemblage of the development site with the acquisition of the Beethoven Piano building, located on 232 W. 58th St. Upon completion the landmark tower will be one of Manhattan's tallest buildings.
A call to Nordstrom seeking comment was not returned. The purchase sends a strong message about the retailer's view of New York City, says retail expert Faith Hope Consolo of Douglas Elliman's retail group.
"This clearly shows the confidence that Nordstrom has in the New York City retail marketplace," she says. "Until now, the company has only put its toe in the water but now it is jumping into the market full force. Nordstrom is a force in the department store industry and Manhattan has waited a long time for it to arrive in full force."
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
