In a nod to the power that Fifth Ave still holds for the world's luxury retailers, Prada SpA has agreed to buy the 12-floor building it has been leasing since 1997 at 724 Fifth Avenue. It is paying $425 million for the property, according to a stock exchange filing yesterday that Bloomberg first reported.
The Italian fashion company said the location offers high strategic value after an influx of residential, hospitality and retail investments in the neighborhood and that it will continue to use the space for its store, offices and storage, according to the filing.
New York's Fifth Avenue retains its top ranking as the world's most expensive retail destination, despite recording flat rental growth year-over-year, according to Cushman & Wakefield.
"From a brand recognition perspective, Fifth Avenue has global importance as a flagship location, especially for luxury-focused brands," he said. "Add to this the fact that the luxury and ultra-luxury segments have maintained strength even in the face of a choppy economy, and the resilience of Fifth Avenue retail is unsurprising," Mark Sigal, CEO of Datex Property Solutions told GlobeSt.com in an earlier interview.
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