Bulgari Shrinking With New Lease in the Crown Building
Liam La Guerre Nov. 10, 2015, 1:15 p.m.
Bulgari will occupy 3,675 square feet on the ground floor of the 26-story retail and office property, less than its current 6,000 square feet, as The Real Deal first reported.
Wharton Properties’ Jeff Sutton and Chicago-based General Growth Properties are the landlords of the building between West 56th and West 57th Streets. Mr. Sutton did not respond to a request for comment.
The asking rent for the space was not immediately clear, but Bulgari will be paying “market rent,” according to GGP’s Nov. 3 third-quarter earnings report. Average asking rents for the Fifth Avenue retail corridor were about $3,683 per square foot, The Real Deal reported. A spokeswoman for Bulgari did not immediately respond to a request for comment.
Mr. Sutton and GGP purchased the Crown Building from former New York Governor Eliot Spitzer’s Spitzer Enterprises and Winter Organization in April for $1.8 billion, as Commercial Observer previously reported. The buying partnership took a $1.3 billion mortgage from Deutsche Bank, Morgan Stanley, Goldman Sachs and Citigroup to purchase the building.
Russian-based Capital Group and real estate developer SHVO subsequently purchased the office section of the tower, on floors four through 26, for $500 million and will convert the space into luxury residential condos, according to a GGP press release from April. Wharton Properties and GGP control the 100,000-square-foot retail section of the building.
A spokeswoman for GGP did not immediately respond to CO’s inquiry about the deal.