Shanghai-Based Textile Firm Takes Part of Donna Karan’s Old Space
By Liam La Guerre April 18, 2017 4:00 pm
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Shanghai Shenda America has signed a 12,015-square-foot lease at Adler Group’s 550 Seventh Avenue to triple its offices, Commercial Observer has learned.
The company, a global textile manufacturer based in China, will occupy the entire 15th floor of the 25-story Art Deco building between West 39th and West 40th Streets, which was one of the four floors that Donna Karan International occupied until 2015. Shanghai Shenda plans to use the space for its showroom and office.
The asking rent in the 10-year transaction was in the $60-per-square-foot range. The manufacturer is moving in the summer from 463 Seventh Avenue between West 35th and West 36th Streets, where it has nearly 3,922 square feet.
Kaufman Organization’s Michael Heaner and Sam Stein are the exclusive leasing and marketing agents for the building, and David Levy and Jeff Buslik of Adams & Co. represented Shanghai Shenda.
“Adler Group committed to a strategic repositioning campaign, one that showcased the building’s history as a premier fashion destination, but also rebranded the property to attract firms that crave social spaces conducive to creativity and innovation,” Heaner said in prepared remarks. “To that end, we have been successful in securing leases with traditional fashion houses, like a Shanghai Shenda, and with the creative [technology, advertising, media and information] firms.”
The landlord recently modernized communal spaces, such as the lobby, and renovated façade as part of an ongoing renovation of the building. And Shanghai Shenda was attracted to the building as it was near its current location and offers more space.
“Shanghai Shenda… needed a larger space to accommodate its growing practice in New York,” Levy, a principal of Adams & Co., said in a statement. “The company also wanted to remain in the Garment District near like-minded tenants and Manhattan’s numerous transit options.”
In June 2015, fashion icon Donna Karan stepped down from her position as chief designer from her eponymous brand, which was owned at the time by French fashion house LVMH. Donna Karan International then vacated its nearly 50,000-square-foot space on the 14th through 17th floors of the building, as CO previously reported. LVMH sold the Donna Karan brand in July 2016 to G-III Apparel Group for $650 million.
In addition to Shanghai Shenda’s lease, Kaufman recently inked 12,015-square-foot full-floor deals with TheaterMania and InVision Communications for the 16th and 17th floors, respectively. The 12,015-square-foot 14th floor is the last remaining available space that Donna Karan occupied.
