Saks OFF 5TH Inks Mega Deal at Cohen’s Tower 57
By Terence Cullen November 17, 2015 12:08 pm
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Saks Fifth Avenue’s discount brand, OFF 5TH, brand will open its first New York City location at Charles S. Cohen’s Tower 57 in Midtown, taking the massive retail space home to the now-kaput Daffy’s.
Parent group Hudson’s Bay Company inked a 56,000-square-foot deal for three levels at the building, officially 135 East 57th Street between Lexington and Park Avenues, according to a press release from the landlord.
OFF 5TH will take the space for 16 years. The asking rent in the deal was $120 per square foot.
The discounted version of the high-end retailer will have 2,000 square feet on the ground floor, according to the landlord, Cohen Brothers Realty Corp. The remaining remaining space is divided between two lower levels that are about 26,000 square feet each, said Brad Mendelson of Cushman & Wakefield, who along with Alan Schmerzler, represented Cohen Brothers with the landlord’s in-house broker Marc Horowitz.
“The addition of a new Saks store in this strategic location will be a dramatic game changer for 57th Street retail east of Park Avenue,” Mr. Cohen said in prepared remarks.
Mr. Cohen said in the release that he held out on the space until the right sort of tenant came along. The space sat vacant for three years, per Mr. Mendelson. Since that time, a slew of buildings have popped up along 57th Street, garnering the name Billionaires’ Row. That includes the towering 432 Park Avenue, which is a block away from Mr. Cohen’s Tower 57.
The Tower 57 OFF 5TH will open in March 2016 and become one of two springing up in Manhattan. Another is set to open Downtown at Brookfield Place in 2017, according to The New York Post, which first reported news of the East 57th Street deal.
Hudson’s Bay Company’s Chairman Richard Baker represented the company directly.
“The move into New York City marks a significant milestone for our brand and represents an exciting opportunity for us to bring the distinct OFF 5TH experience to the New York consumer,” Jonathan Greller, the head of outlets for Hudson’s Bay Company, said in a press release by the retailer.
With additional reporting provided by Lauren Elkies Schram.
