Leases  ·  Office

Home Furnishings Manufacturer Arlee Home Fashions Relocating Within Midtown South


After more than 25 years at 261 Fifth Avenue at East 29th Street, Arlee Home Fashions is moving its office and showroom within Midtown South this fall, Commercial Observer has learned.

Arlee Home Fashions, which manufactures and markets household furnishings, has signed a lease for 15,805 square feet at 36 East 31st Street between Park Avenue South and Madison Avenue, according to the tenant’s broker. The space spans 11,986 square feet, on the entire eighth floor, and 3,819 square feet on part of the seventh floor.

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The asking rent in the 10 year-lease was $56 per square foot, noted Elie Smith of Norman Bobrow & Company, who represented the tenant. David Koeppel, a partner of Koeppel Rosen, represented the landlord in-house.

“36 East 31st Street is a considerably more cost-effective building than 261 Fifth Avenue,” Smith said in prepared remarks. “Koeppel Rosen was also looking to upgrade their building and its tenant roster.”

Arlee Home Fashions wanted to remain in the area—between East 29th and East 34th Street between Fifth Avenue and Park Avenue South—as it is home to many home furnishings trade companies, Smith indicated.

Arlee Home Fashions makes curtains, bedspreads, kitchen and table linens, other home furnishings and pet products, which it sells to stores like Macy’s, Costco, Walmart and Bed Bath & Beyond.

To build their installation the landlord did base work, including new bathrooms and new central air conditioning units where necessary, and offered a “sizable” cash contribution for the buildout. The landlord also offered free rent during construction, according to Smith.

Other tenants in the 12-story, 138,000-square-foot building include Ramanan Antique & Decorative Rugs, Persian Gallery New York and Atlas Rug.