Normandy Buys Upper Floors Of ABC Carpet Flagship Store For Office Conversion
As retail real estate remains challenging across the country, ABC Carpet & Home is following the trend of shrinking footprints to adapt to changing consumer behavior, and to save money as well.
ABC has sold the top four floors of its six-story flagship location at 888 Broadway in the Flatiron District, just a few blocks north of Union Square, the Wall Street Journal reports. Normandy Real Estate Partners purchased the portion for $133M and plans to convert all four floors into offices.
Although ABC has deftly adapted to the growing emphasis on experiences within retail at 888 Broadway by integrating restaurants and events hosted by Deepak Chopra, it has still found itself with a six-story location during a time when leases are shrinking. Luckily, it sits within the Midtown South office submarket, where Class-A asking rents often break $100/SF and vacancy is lower than in Midtown and Downtown.
Normandy saw an 1880s-era building with 35K SF floor plates, large ceilings and skylights and knew it could create an office space that would demand rents over $100/SF, according to the WSJ. The developer plans to update the building's mechanical systems and add new windows, a glass penthouse and a roof deck, pending approval by the Landmarks Preservation Commission.
ABC will continue to operate its store on the basement, ground floor, mezzanine and second floor of 888 Broadway, with its corporate offices also remaining in place on the second floor. CBRE will market the office portion on behalf of Normandy.