Heytea Taking Over Swarovski’s Times Square Store
By Mark Hallum July 30, 2024 2:57 pm
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Times Square is going from Swarovski to Heytea, Commercial Observer has learned.
The Chinese tea company signed a 2,390-square-foot sublease with the jewelry chain for the retail space at 1565 Broadway, owned by Jeff Sutton’s Wharton Properties, which Swarovski originally leased in 2017, according to sublandlord broker Louis Franco of Isa Realty Group.
Asking rent in the deal was $4 million per year and the lease expires in 2034, Franco said.
Known for its drinks such as Very Grape Cheezo or Mango Grapefruit Sago served at its current Manhattan location at 1407 Broadway, Heytea has about 3,000 locations in Asia and is looking for potential franchisees to expand at a greater rate in the U.S.
“[Heytea is] making a very big push on the franchise end, so what basically sold them was, ‘Guys, if you’re looking to sign franchisees, there’s no better place than Times Square to basically plant your flag,’ ” Franco told CO. “Times Square in general is a place where any brand can go and make any statement they want to make.”
Swarovski will leave its Times Square store as it plans to focus on its 14,000-square-foot flagship location at 680 Fifth Avenue, where it signed a lease in March 2022, according to Franco.
Franco, Jack Hurley and Dylan McCullough of Isa realty Group represented Swarovski in the deal while Shiyun Shang and Mathiew Wilson of Alignment NY handled negotiations for Heytea.
“Navigating NYC’s dynamic real estate market can be challenging, but our unwavering commitment to fully understanding and aligning with our client’s vision ensured a successful outcome,” a spokesperson for Alignment NY said in a statement. “This achievement marks a significant milestone for both the landlord and HeyTea, setting the stage for future success.”
Times Square is shaping up to be the center of retail oddities. The Fantastic World of Portuguese Sardines raised eyebrows in August 2023 by signing a lease for its first U.S. store at Sherwood Equities-owned 2 Times Square.
Mark Hallum can be reached at mhallum@commercialobserver.com.
