Best Buy is trading one Fifth Avenue corner for another.
The electronics chain is moving its Midtown store to Moinian Group’s 535 Fifth Avenue, across the street from its existing store on the corner of East 44th Street, according to documents filed on the Tel Aviv Stock Exchange.
Best Buy signed a ten-year lease for 40,839 square feet at the 36-story building, which stretches from East 43rd to East 44th Street, for $8.25 million a year, or $202 per square feet, according to the documents. The electronics store will open a flagship store that will occupy the ground floor, the mezzanine floor and the lower level.
The deal comes with two options to extend the lease for five years each, at which point the rent will increase, per the disclosure. Moinian has agreed to pay $7.5 million in tenant improvement costs, which will be deducted from the rent if they don’t pay up.
The existing Best Buy is located at Silverstein Properties’ 529 Fifth Avenue, on the South side of East 44th Street. Best Buy will not be renewing their lease at that location, The Real Deal first reported.
Peter Ripka of Ripco Real Estate represented Best Buy in the deal.
Updated: This story has been updated with the name of the tenant broker.