Grand Seiko Opening 6K-SF Outpost at 540 Madison

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Time is money for this luxury watch brand setting up shop in Midtown.

Grand Seiko has signed a 6,259-square-foot lease to occupy one of the ground-level retail spaces at DivcoWest’s 540 Madison Avenue between East 55th and East 54th streets, The Real Deal first reported.

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Newmark, which represented both sides of the deal, did not disclose asking rents or the length of the lease. 

A source with knowledge of the deal said timepieces will start to sell at the location by early 2023, and that the tenant signed a 10-year lease with an asking rent of $475 per square foot.

“As the retail sector in New York continues its recovery, more and more well-known brands are committing to the city,” Newmark vice chairman Ariel Schuster said in a statement.

Schuster represented DivcoWest in the deal while Newmark’s Benjamin Birnbaum and Alexandra Tennenbaum handled negotiations for Grand Seiko.

DivcoWest recently put the 292,000-square-foot office building through a renovation that turned the 11th and 12th floors into the The Water Tower Club, a 6,000-square-foot tenant lounge that features a coffee bar, outdoor seating and conference rooms.

The landlord purchased 540 Madison in 2019 with a $170 million loan from SunTrust Bank and BNY Mellon to help fund the full $310 million buy, Commercial Observer previously reported.

Mark Hallum can be reached at mhallum@commercialobserver.com.