Juicy Couture is being squeezed out of its prominent shop in the base of 650 Fifth Ave., but is pocketing a cool $50 million for its trouble.
Earlier this month, a US Federal Justice gave permission for SL Green Realty Corp. and Jeff Sutton to buy the approximately 32,000 square-foot master lease for all the retail space in the 36-story building at the southwest corner of West 52nd Street.
The office tower, built in the late 1970s with funding from the Shah of Iran, has been the subject of federal court proceedings because of its ties to the Iranian government.
Federal prosecutors allege that the ownership group, the Alavi Foundation and Assa Corp., violated sanctions against Iran and laundered money on behalf of the government.
The deal for the Juicy retail space by SLG and Sutton included about 18,000 square feet covering the basement, ground and second floors. The third floor of roughly 11,000 square feet will be incorporated for the next occupant to make an even juicer store of 29,000 square feet.
Tenants currently include Godiva, Devon & Blakely and Juicy Couture, which had just over seven years left on its lease.
Juicy’s current owner, Fifth & Pacific, is in the middle of selling the label to Authentic Brands for $195 million so it can concentrate on its better performing brands such as Kate Spade.
Juicy could close the store by January. No one returned an email for comment.
In a Nov. 7 court order, US District Judge Katherine Forrest noted that by not signing the master lease for the retail, the building was losing out on $30,000 a day in income that would help stabilize the asset.
It can only be expected that retail maestro Sutton is working on deals to buy out the two other shops and install higher-paying tenants.
Sutton and SLG recently renewed Prada four years early at 724 Fifth Ave., ensuring its rents for about 15,500 square feet across its four retail levels plus another 5,200 square feet for offices on the fifth floor.
Neither Sutton nor SLG returned requests for comment.
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Another of the Savannah-owned buildings is up for grabs after being renovated and leased up.
The Studley Capital Market’s team of Woody Heller, Will Silverman, Eric Negrin and Daniel Parker has been hired to market the 510,000 square-foot, 27-story office tower at 1375 Broadway along the stretch dubbed Times Square South.
“It has one of the most handsome new retail façades in the corridor,” said Heller.
Though uncommon for the location, Heller noted that the building has been an address for non-fashion tenants before it became, well, fashionable.
“The leasing profile offers the stability of a core asset, with the long-term upside of a value-add opportunity,” he added.
The 1927-era tan building on the northwest corner of West 37th Street has undergone numerous renovations, including a new lobby and retail façade. But it is expected to trade in the $500s per foot, as there are some long-term, under-market leases.
According to CoStar data, the largest tenant with 114,691 square feet is Anchin Block & Anchin, which renewed its lease in 2008, a time rents were in the mid-$30s a foot.
Savanna previously renovated 5 Hanover Square in the Financial District and sold it for $104 million over the summer to CIM through Douglas Harmon and Adam Spies at Eastdil Secured.
Savanna had purchased it from Kent Swig in June 2010 for just under $65 million.
In the Garment District, cater-corner to No. 1375 and across Broadway, the mid-block 1370 Broadway is being marketed for Normandy Real Estate Partners through Darcy Stacom, Bill Shanahan and Paul Gillen of CBRE. Sources said bids will be taken on Friday.
At a smaller 279,533 square feet, the building’s sleek modern renovation with new lobby, elevator cabs, corridors, bathrooms and infrastructure, along with higher income, is expected to result in a price in the high $600s per foot.
It also benefits from the new pedestrian promenade at its doorstep.
Normandy’s Paul Teti and Gavin Evans bought it in April 2012 for $123.75 million. Over the summer, Teti told us all the new rents “were ending up in the $50s per foot.”
Don’t be surprised if more of these older towers between 34th and 42nd Streets start trading again now that the first wave of new ownership blood completes their renovations and leasing programs.
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The Bank of the Ozarks has started making loans in the city for the first time since 2006.
This month, Harlan Berger of Centaur Properties obtained a $10 million loan from the bank for his West Chelsea development site that runs from 526 to 530 W. 28th St.
He bought it in July for $45 million in cash from an owner who paid a mere $3.65 million in 1998.
This year the Dallas-based bank also made loans to the McSam Hotel Group for $27 million on 538 W. 48th St. and another on Waverly Place for another owner.
