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Another luxury brand is paying nearly $1B to acquire retail space on Fifth Avenue.
Kering, the parent company of Gucci, Balenciaga and Brioni, is paying $963M to acquire the 115K SF retail condominium at 717 Fifth Ave., it announced Monday. The multilevel space sits at the base of a 26-story office tower and was sold by Jeff Sutton's Wharton Properties.
Sutton was also the owner of 720 and 724 Fifth Ave. across the street, which Italian fashion house Prada paid more than $820M combined to acquire last month.
The sales show that demand from iconic fashion brands for space on the globe's most expensive retail strip has roared back since the early days of the pandemic when some questioned whether Fifth Avenue would ever regain its cachet.
The space at 715-717 Fifth Avenue has been leased to Armani and Dolce & Gabbana. It is unclear what Kering's plans are with the existing tenants, who aren't among the Paris-based company's roster of fashion, leather and jewelry brands.
"With this transaction, Kering acquires exceptional retail locations on one of the world’s most iconic avenues," the company said in a press release. "This investment represents a further step in Kering’s selective real estate strategy, aimed at securing key highly desirable locations for its Houses."
The deal is a huge turnaround for Sutton at the property, in which SL Green owned an 11% stake. The venture had faced a foreclosure suit from New York Life after defaulting on a $300M loan, The Real Deal reported.
Eastdil Secured advised Sutton in the deal with Kering.
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