The sale of the distinctive Takashimaya Building on Fifth Avenue is entering a new phase, as select bidders, including Vornado Realty Trust, have been invited to submit second-round offers in another test of the city’s retail comeback.

According to sources familiar with the matter, Vornado, a group that includes David Werner, a team of Jeff Sutton and SL Green Realty and an unidentified luxury retailer are all said to be preparing offers due at the end of the month to Nat Rockett at Jones Lang LaSalle.

Pricing for the 97,000-square foot building is estimated at between $120 million and $130 million, with many offers coming in at more than that. At $130 million, the price per foot is a stratospheric $1,340 per square foot.

Rockett declined to comment.

To make the deal work, sources said the retail rent would have to equal $2,000 a square foot for the ground level and $150 a square foot for the rest of the building, regardless of whether the space is used for retail or offices. Another challenge facing the building: it has just two elevators.

A winner is expected to be chosen next month.

Other bidders interested in the building include Stanley Chera’s Crown Acquisitions, which is selling its 666 Fifth Ave. retail condominium, Joseph Cayre, who just bought the HSBC Building at 452 Fifth Ave., and George Constantine’s Heritage Realty Services, which owns the retail condo at 420 Fifth Ave.

The top floors are likely to be used for boutique offices with three or more bottom floors for luxury retail.

“No one will rent eight floors of retail,” said Brad Mendelson of Cushman & Wakefield, who was just involved in representing 666 Fifth Ave. in its lease to Uniqlo. “It didn’t work for Takashimaya.”

Retailers said to have kicked the Takashimaya Building’s tires include Michael Kors, Harry Winston, Oakley, and Desigual.