Kering, the French luxury group that owns Gucci, Balenciaga and Alexander McQueen, has acquired the retail portion of 715-717 Fifth Avenue in New York City. for $963 million. The 115,000 square foot property was sold by SL Green and Jeff Sutton's Wharton Properties, according to the Real Deal.
Sutton was also the seller of 720 Fifth Ave. for approximately $410 million. Prada scooped up that property several weeks ago along with the 12-floor building it has been leasing since 1997 at 724 Fifth Avenue. It paid $425 million for that building.
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.
Kering appears to be of the same mindset. "With this transaction, Kering acquires exceptional retail locations on one of the world's most iconic avenues," the company said in a statement. "This investment represents a further step in Kering's selective real estate strategy, aimed at securing key highly desirable locations."
Kering has recently acquired prime properties on Avenue Montaigne and Rue de Castiglione in Paris and also owns landmark properties in Tokyo's Omotesando district, and the Hôtel de Nocé housing luxury jewelry and watch brand Boucheron's Paris flagship store.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
