Ulta To Open $400M, 4-Story Times Square Flagship

Ulta Beauty has agreed to pay $400M to lease an entire building in the Times Square bowtie for its new experiential flagship.

The makeup retailer will occupy all four floors of Jeff Sutton’s 26K SF property at 1551 Broadway, The Real Deal reports. The deal includes the 250-foot LED sign plastered on the building.

Ulta will replace American Eagle Outfitters, which currently occupies the space. The new lease reportedly spans 15 years. 

During the company's first-quarter earnings call Tuesday, Ulta CEO Kecia Steelman announced a Times Square flagship, expected to open in 2027, but she didn’t share the specific location. 

She told investors the store would be "highly experiential" and "showcase next-level brand-building and storytelling capabilities."

Ulta operates more than 1,500 stores in the U.S. and has opened 70 locations since May 3, 2025. Its typical store size is approximately 10K SF, of which 950 SF is dedicated to a full-service salon.

Sutton, who heads Wharton Properties, redeveloped the property in partnership with SL Green after a Howard Johnson's diner shuttered in 2005. The landmark, which was demolished and replaced with the retail building, was known as one of the last remnants of the gritty Times Square of the late 20th century.

SL Green later sold its 50% stake in the property to Sutton. Earlier this year, Sutton refinanced the property with a $176M loan from ACORE Capital.

Known as the King of Retail, Sutton’s portfolio consists of various properties in New York City’s prime shopping corridors, including Fifth Avenue, Madison Avenue, SoHo and Times Square. 

Times Square’s availability was 15.8% in the first quarter, down from 17.5% the year before but still higher than many other areas of Manhattan, according to a Cushman & Wakefield report. Asking rents were $1,501 per SF, down from $1,541 in 2025.

Ulta’s lease at 1551 Broadway pencils out to approximately $1,025 per SF.