After speaking to brokers, Atlanta-based Coca Cola has apparently decided it could not get the same or larger rent at its 711 Fifth Ave. building and will leave Polo Ralph Lauren on the hook for its store payments.
“Ralph Lauren’s lease for space at 711 5th Avenue remains in effect and they are responsible for any potential sublease. The Coca-Cola Company is not a party to the brokerage selection process for this space.”
The previous rent for the entire 46,474 square feet was between $20 million and $25 million a year.
While Coke operates the World of Coca-Cola in Atlanta, it is unlikely it was deemed that it would not open one in this fashion-oriented area.
The gain and loss of retail tenants affects city coffers from its sales and employee taxes to property taxes. Since the lease through 2030 was signed at the end of 2013, the billable assessed value for the 310,000-square-foot building has leaped from about $70 million to $112 million. The city’s take has also risen from $6.8 million a year to about $11.8 million starting in July.
