Gap Inc. inked two new retail leases on Thursday night for about half of the monster-sized space occupied by Toys ‘R’ Us in Times Square, the landlord’s broker told Commercial Observer, in a deal that includes building a third floor for Old Navy.
The Gap snagged 6,000 square feet on the ground floor, 25,000 square feet below grade plus the signage on the roof at the Bow Tie Building at 1514 Broadway between West 44th and West 45th Streets. Old Navy has taken 6,000 square feet on the ground floor to the north of the Gap, 17,500 square feet on the second floor—and also, the clothing company will be building a 17,500-square-foot third floor, C. Bradley Mendelson of Cushman & Wakefield exclusively told CO.
Mr. Mendelson along with colleague David Green represented the landlord, Charles Moss of Bow Tie Partners, in the two separate leases. RKF‘s Ariel Schuster and Justin Fantasia represented Gap Co., parent company of The Gap and Old Navy. The RKF brokers didn’t immediately respond to a request for comment via a spokesman.
Each clothing store deal is for 15 years with an asking rent of $2,500 per square foot on the ground floor, $350 a foot on the second floor and $150 per foot in the basement.
“This signature spot builds on Gap Inc.’s continued commitment to showcase its brands in ideal locations that best serve customers,” said Sean Piazza, Gap Inc.’s spokesman, according to press accounts. News of the deals comes on the heels of Gap Inc.’s announcement that it is closing about 175 Gap brand stores.
Bow Tie Partners is considering building a third floor next to the portion that Old Navy will be constructing. The rent there would be $125 per square foot, Mr. Mendelson said. As CO revealed in March, Toys “R” Us decided not to renew its lease for the 110,000-square-foot flagship store and now the space is being broken up for multiple tenants.
The high-profile tenants in the building, Foot Locker, Swatch, restaurant Bond 46 and Starbucks, will be getting the boot on Feb. 1, 2016, to make way for construction.