Retailer Urban Outfitters to Open 15K-SF Store at 575 Fifth Avenue
The lease comes as the 40-story office tower at 575 Fifth Avenue enters into new ownership
By Lois Weiss April 13, 2026 2:05 pm
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Clothing retailer Urban Outfitters is moving one of its stores a few blocks uptown to 575 Fifth Avenue, Commercial Observer has learned.
The popular clothing store chain, owned by retail brand corporation Urbn, is currently located in 22,238 square feet at 521 Fifth Avenue. Urban Outfitters will relocate that store to its new 15,345-square-foot space at 575 Fifth Avenue, on the corner of East 47th Street and Fifth Avenue.
News of the relocation comes as the 40-story office tower at 575 Fifth Avenue enters into new ownership. Real estate investment firms Sovereign Partners and HudsonPoint Capital are in contract to buy the 544,000-square-foot property from Beacon Capital Partners and MetLife for around $385 million, Commercial Observer first reported Monday.
Tim Duffy of the McDevitt Company represented Urban Outfitters in the deal, while Cushman & Wakefield’s Sean Moran, Patrick O’Rourke, Steven Soutendijk and Catherine Merck brokered the deal for building ownership.
The C&W team that represented the building was able to incorporate a former L’Oreal lower-level cafeteria with 12,574 square feet into the ground floor’s 2,771-square-foot retail space.
The retail asking rent at 575 Fifth Avenue was $3 million per year, which breaks down to around $625 per square foot for the ground floor and $100 per square foot for the lower level.
The 12-year term also aligns with the end of the lease for the building’s corner retailer, French sports fashion brand Lacoste. Work has already begun on the space, with delivery to Urban Outfitters expected this summer for their own buildout as they target an opening in the first quarter of 2027.
Urban Outfitters was also able to extend its deal at 521 Fifth Avenue through that first quarter to align with this strategy. It was also made easier as Soutendijk, Moran and O’Rourke represent 521 Fifth Avenue. The current retail asking rent at 521 Fifth Avenue is $500 per square foot for the ground floor and $125 per square foot for the second floor.
Coincidentally, both buildings — 521 and 575 Fifth Avenue — are in the process of being sold.
In addition to Sovereign Partners and HudsonPoint Capital’s acquisition of 575 Fifth Avenue — which was marketed by Eastdil Secured — a JLL team led by Andrew Scandalios and Steven Binswanger are marketing Savanna’s 502,406-square-foot 521 Fifth Avenue, which is just 62.9 percent occupied.
The wedding-caked 39-story tower is steps from Grand Central Terminal in what is now a booming office market.
But Savanna, which paid $381 million in 2019 for the building right before the COVID-19 lockdowns, has been unable to keep up with the commercial mortgage-backed securities debt issued by Deutsche Bank, and it was foreclosed in August with a lien of over $260 million. Savanna and special servicer LNR Partners are cooperating in the sale.
