Leases  ·  Retail

McNally Jackson Plans New Stores in City Point, South Street Seaport


As McNally Jackson owner Sarah McNally announced last week that the famed bookstore would stay put on Prince Street, she laid out plans for two new stores in South Street Seaport and City Point in Downtown Brooklyn.

In October 2018, her landlord at 52 Prince Street, Alex Berley, threatened to hike her rent from $350,000 to $850,000 as part of a new lease. Then McNally said that the bookstore would be forced to close. Ultimately, she struck a deal with Berley to pay $650,000 annually, with “gradual increases over the next five years,” according to Vulture.

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McNally also told New York’s entertainment section about her two new outposts at City Point and South Street Seaport, the latter of which has been in the works since 2015. A spokeswoman for City Point confirmed that McNally Jackson would open a 5,500-square-foot bookstore this fall in the mall portion of the project at 445 Albee Square West.

Commercial Observer has learned that the longtime Nolita bookseller signed a five-year lease in January for a two-floor space along the “Prince Street passage,” which is the main ground-floor corridor of the mall. The Downtown Brooklyn location will feature a shared communal space with plenty of books, a large kids’ section and space for author readings, according to the City Point spokeswoman.

“I have lived most of the last 20 years in Brooklyn, but I never thought I would open a bookstore here. Downtown never opened up as a possibility until City Point,” McNally said in a statement. “It is the perfect spot for McNally Jackson and we are excited to introduce our literary haven to this expansive community.”

Jonathan Schley of CBRE (CBRE) handled both sides of the deal and declined to comment on it.

The new Seaport shop will “span several buildings and more than 7,000 square feet,” per Vulture. The 7,700-square-foot lease was signed in 2015 at the Fulton Market Building, aka 1-13 Fulton Street, as CO reported at the time. The opening has apparently been pushed back a few times since then because of construction. McNally told CO she signed a 10-year deal there and plans to open in late July or early August. McNally Jackson will occupy a two-story storefront on Schermerhorn Row that will include a café with outdoor seating and a large upper floor overlooking the water. Schley negotiated this lease as well.

Howard Hughes Corporation has been redeveloping the Old Tin building and other 18th century properties in the South Street Seaport to accommodate new tenants like home goods store 10 Corso Como, a food hall from Jean-Georges Vongerichten and ESPN studios