The owners of Gucci on Monday bought a main Fifth Avenue retail property for a whopping $963 million — and it could mean the boot for rival fashion house Armani from its flagship location.
Gucci’s parent Kering scooped up the 115,000 square-foot, three-level retail space at 715-717 Fifth Ave., at East 56th Street, which sits at the bottom of a 28-story office tower often called the Corning Glass Constructing.
The newest retail condo sale is momentous on several levels.
It marks seller Jeff Sutton’s third spectacular coup on the fabled shopping street in lower than a month. The distinguished retail developer/landlord’s Wharton Properties sold each 720 Fifth Ave. and 724 Fifth to Prada for a complete $835 million last month — which were town’s largest combined investment-sale transactions in 2023. Eastdil Secured advised Sutton on all of the deals.
Gucci’s owner said the acquisition of the Corning Glass Constructing “represents an additional step in Kering’s selective real estate strategy geared toward securing key, highly desirable locations for its houses.”
It also reflects the soaring fortunes of the “World’s Biggest Shopping Street,” with the Kering purchase accelerating the trend of major retailers buying Midtown Fifth Avenue properties for their very own use — following Prada, LVMH, Rolex and Harry Winston, amongst others.
Gucci bought the retail property for a whopping $963 million. ZUMAPRESS.com
“Note that almost all of the buyers are foreign corporations,” Cushman & Wakefield retail power-broker Joanne Podell said. “Perhaps because in Europe, they buy long-term interests in retail properties. They don’t should cope with lease expiration dates. After all there may be innate value in buying on a very powerful retail street on the earth.”
It is just not clear how the sale will impact the constructing’s current tenant, Armani boutique and restaurant at 717 Fifth – or the present Gucci flagship at Trump Tower across the road.
One other fashion rival, Dolce & Gabbana, also has a big store at the placement. Kering’s lines along with Gucci include Saint Laurent, Balenciaga and Alexander McQueen.
Armani at 717 Fifth Ave. The acquisition accelerates the trend of major retailers buying Midtown Fifth Avenue properties for their very own use Elizabeth Lippman
Armani’s lease at 717 Fifth, signed in 2007, is claimed by sources to be up in just a few months. The renowned fashion house will soon open a latest store and restaurant at 760 Madison Ave., where it partnered with SL Green in a Giorgio Armani-branded condo tower.
SL Green was a ten.9 percent minority partner within the Fifth Avenue retail property. SLG chief investment officer Harrison Sitomer said, “This disposition represents one other successful investment in our partnership with Jeff Sutton. The transaction is one more example of how well-located assets proceed to generate demand for global investors across cycles.”
