A retail joint venture has agreed to sell a part flagship store in New York City for $350 million to Japanese retailer Uniglo.
The JV is majority-owned (52 percent) by Vornado Realty Trust. The sale applies to the Uniqlo portion of the flagship shop at 666 Fifth Avenue in Manhattan, which measures 90,732 square feet. Of that, the JV held 17,295 square feet (6,477 at grade level) of fee condominium interest for the space, which is set to go to Uniqlo.
Vornado said the JV’s ownership will continue at Abercrombie & Fitch and Tissot locations at 666 Fifth Avenue. They make up 23,832 square feet of retail space, or 7,416 at grade level, according to the investment trust.
Additionally, the pass-through lease agreements between the JV and office condominium are set to be terminated. The sale is pending customary closing conditions, which include a distinct transaction made by Uniqlo and the owner of the office condominium, according to Vornado. But it is expected to be completed in the first three months of next year.
Vornado expects to use an estimated $340 million in proceeds to help pay back some of its preferred equity, which comes out to $390 million, on the flagship store.
On the deal, Eastdil Secured served as the advisor to the JV.