The Swatch Group would like to transfer its legacy of horological savoir faire to Manhattan’s center and is eyeing a swath of prime luxury retail on Fifth Avenue.
The Swiss-based company, sources say, is laser- focused on leasing the southeast corner of East 55th Street to occupy much of the St. Regis Hotel retail condominium space.
The store would be used for one or more of its upscale brands that include Breguet, Harry Winston, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot and Omega.
“Never would it be a Swatch store,” sniffed a snitch of its namesake cheap-chic, toss- away timepieces.
But to complicate its wishes, that duplex space on the corner is now occupied by the diamond diggers, DeBeers, which elegantly displays and sells its uniquely branded jewels and designs. To its south is another upscale watch company, Tag Heuer.
Both firms, sources say, have another four years left on their leases. They are facing huge rent bumps from the retail condominium’s new ownership group of Crown Acquisitions and Vornado Realty Trust, which paid $700 million, or $28,200 per square foot, for the 24,800 square feet that also includes Bottega Veneta in December.
Seller Richemont had paid $375 million back in 2012, or $15,100 per square foot — and had expected to move in its own brands before deciding it was faster to flip and pocket $325 million.
And as more jewelers are clinging to the best spots between 50th and 57th streets — and the Crown Building is redeveloped by its soon-to-be new owners, Jeff Sutton and General Growth Properties, with 110,000 square feet for the most sophisticated retail — rents will surely rise well past the $5,000-per-square-foot mark. That’s an awful lot of hypnotizing glitter and watches trading hands.
But when you can sell your special tchotchkes and trinkets for $10,000 and up to an international group of tourists and well-heeled locals, you may decide to pay whatever rent the owners decide.
Swatch is being represented by Bradley Mendelson of Cushman & Wakefield. None of the parties would comment.
Haim Chera of Crown just represented Swatch in a relocation from the Toys “R” Us building at 1514 Broadway, which is being emptied for a renovation and new tenancies, to a 2,000 square-foot portion of the Billabong space across Times Square at 1515 Broadway.
Another fashion retailer is being bumped out of its offices and may be bringing its luxury and class to downtown digs.
Southern spies say Gucci, now located at 685 Fifth Ave., is on the hunt for new offices and is targeting about 70,000 square feet.
The Kering-owned company is searching with Bruce Mosler and Mark Mandell of Cushman & Wakefield, who did not return calls for comment. The company also declined comment.
Joseph Sitt’s Thor and General Growth Properties purchased its longtime home at 685 Fifth Ave. on the southeast corner of East 54th Street, where it had roughly 100,000 square feet of offices, last June for $460 million.
The retail store previously moved to a ginormous glamorous 50,000 square-foot store at Trump Tower on the northeast corner of East 56th Street.
The company is also preparing to open its Brookfield Place store, which has turned into downtown’s luxe destination.
Transportation and location are still kings. The office building at 101 Park Ave. at 40th St. has signed 250,000 square feet in the last few months.
Morgan Lewis & Bockius will expand by 100,000 square feet to bring its total occupancy to 300,000 square feet. It was represented by Thomas Doughty, Lisa Kiell and Barbara Winter of JLL.
The law firm Curtis, Mallet-Prevost, Colt & Mosle renewed its lease for 92,000 square feet through the Newmark Grubb Knight Frank team of Jared Horowitz and William Mendelson.
Both of the law firms are original tenants in the dramatic 1982 office building that has an open plaza on the northeast corner of East 41st Street. The plaza’s stone is being refreshed and the lobby lighting is being upgraded.
Another law firm, Fox Rothschild, now at 100 Park Ave., will move and expand across the street to 46,000 square feet on the 16th and 17th floors repped by Mark Weiss, Robert Eisenberg and Doug Simon of NGKF.
Hitachi Data Systems has also leased the entire 10th floor of 25,000 square feet, where it will move from 452 Fifth Ave. It was represented by Alexander Chudnoff and Scott Vinett of JLL.
The HJ Kalikow ownership was represented in all the deals by John Cefaly and Gus Field of Cushman & Wakefield.
The building is getting $120 to $150 a square foot on the tower floors, $100 per square foot in the midrise and $75 to $90 per square foot in the base.
“Fifty-five percent of the space of this building is occupied by original tenants,” said Peter Kalikow, president of HJ Kalikow, which also developed the 50-story building. It has a “great location,” Kalikow says, calling it the “center of everything” due to its spot by Grand Central.
“People are going to find out that moving away from the central business districts is not a great idea,” Kalikow added. So there.
