A generational family owner of one of Worth Avenue's most notable retail properties is looking for a new generational owner. Because this isn't no flipping deal.
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The Madden Family Associates has put the iconic Tiffany & Co building at 259 Worth Ave in Palm Beach up for sale, with an asking price that could exceed $40M.
That means the circa 1950s building, at more than 16,300 SF, could trade at more than $2,400/SF. But that's the price for entry on one of America's most expensive retail streets, right up there with Rodeo Drive in Beverly Hills and Michigan Avenue in Chicago, says Franklin Street's Robert Granda, who has been tapped to sell the property, along with Greg Matus (flanking Greg's wife, Cindy, below).
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“They're in the most prominent corner on Worth Avenue,” Robert says. “This is probably one of Tiffany's most prized locations. You can't duplicate this real estate.”
Tiffany has been at this location since 1991, and has since pumped millions into its marble façade, steel doors and Tiffany clock. That will hopefully convince the haute retailer to stay put, given its lease is expiring in 2018.
What could be a challenge for a sale, Robert says, instead shouldn't be a problem, as Tiffany has given them in writing its intent not to move, although the retailer has yet to enter into lease negotiations.
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Robert says there are three likely buyers for the property: REITs with an appetite for urban retail that's not driven by cap rate; foreign investors who want to parlay a strengthening dollar; and private high-net-worth investors who see this as a generational hold, much like the Maddens.
“This is not the type of deal someone is going to get into and flip in five years," he says. Although there is some potential upside on rents if Mark Borghi Fine Art gallery or 55 Croisette—a French luxury boutique—ever decide to vacate their smaller spaces.
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