Leases  ·  Retail

Under Armour Nears Deal for Former FAO Schwarz Space at GM Building

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Apple (AAPL) may be temporarily taking the 60,000 square feet of space formerly occupied by FAO Schwarz in the General Motors Building, but activewear brand Under Armour is close to a deal to take it over on a more permanent basis, Commercial Observer learned at this year’s ICSC conference in Las Vegas.

The New York Post reported earlier this month that Apple was assuming the FAO space “on a ‘temp’ basis while it refreshes its underground fortress” in the building. CO has now learned that Under Armour is the likely longer-term tenant in Boston Properties’ building at 767 Fifth Avenue, which spans Madison to Fifth Avenues and East 58th to East 59th Streets.

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Last summer, the oldest toy company in the country vacated the GM Building—its home for nearly 30 years—due to a significant rent increase, as CO previously reported. The toy giant shelled out $20 million a year for the space, as per a Boston Properties first-quarter 2016 earnings call.

Steven Soutendijk and David A. Green of Cushman & Wakefield represent the landlord for retail deals at the building. C&W declined to comment via a spokesman on the potential Under Armour deal.  

Under Armour, known for its sports apparel, shoes, and accessories, only moved into the New York City market with a retail store a few years ago when it took a 20,500-square-foot lease at 583 Broadway between Prince and West Houston Streets in Soho, as CO reported at the time. That came a few months after Under Armour inked a 19,000-square-foot deal at the Starrett-Lehigh Building for its first New York office space.

Boston Properties’ investor relations manager didn’t immediately respond to a request for comment, nor did a representative of Under Armour.

With additional reporting provided by Terence Cullen.