New Balance has put itself in the running on the Upper East Side.
The sports apparel chain will be opening in roughly 2,500 square feet at 1172 Third Avenue between East 68th and East 69th Streets through a sublease with CVS, according to Newmark Grubb Knight Frank Retail’s Jason Pruger, who negotiated the deal on behalf of the pharmacy retailer with colleagues Ross Kaplan and Trever Gallina. The sublease includes 1,592 square feet on the ground floor and approximately 1,000 square feet below grade. That leaves CVS with about 7,700 square feet on the ground level.
About seven or eight months ago CVS leased roughly 9,300 square feet previously occupied by bankrupt women’s clothing chain Coldwater Creek at the base of the 28-story residential building at 1172 Third Avenue, Mr. Pruger said. From the outset, CVS put a slice of the space on the sublease market. Mr. Pruger represented CVS in the initial deal.
The sublease length “matches with the CVS lease,” which was signed 15 years with options. The asking rent was $350 per square foot, Mr. Pruger said.
New Balance, which has a store at 150 Fifth Avenue between West 19th and West 20th Streets, will now be able to compete with Reebok and Nike in the East 60s on Third Avenue.
Reebok Fit Hub sells fitness and training products at 1132 Third Avenue at East 66th Street and Nike Running is at 1131 Third Avenue between East 66th and East 67th Streets.
“With the success of Reebok and Nike and their demographic, it made natural sense to be where their competitors are doing well,” said Mr. Pruger.
The late Bill Crisp of SRS Real Estate Partners represented New Balance in the deal.
New Balance is slated to open its new store in the spring, Mr. Pruger said.