Update: Nordstrom to Hit Manhattan–Finally
By Barbra Murray, Contributing Editor
It’s been a long time coming. Nordstrom Inc. has had its eye on opening a store in Manhattan for yearsand years, and now the long-held plan is finally coming to fruition. The fashion specialty retailer joined New York City Mayor Michael Bloomberg and real estate owner Extell Development Co. this afternoon to announce Nordstrom’s 285,000-square-foot news.
Nordstrom has signed on the dotted line of an agreement to occupy seven stories of build-to-suit space at the base of a mixed-use tower that Extell intends to erect at 225 West 57th St. “This follows on the great success of ONE57, the 90-story residential tower being completed across the street form Carnegie hall,” George Arzt, spokesperson for Extell, told Commercial Property Executive. “We expect even greater success for this site because of the growing vibrancy of the area.”
The high-rise will sprout up on a spot that had been home to the original Hard Rock Café. According to New York City property records, Extell acquired the site in 2005. Excavation work may get underway as early as the first quarter of 2013, and Nordstrom is scheduled to swing open its doors to shoppers in 2018.
Retail real estate company RKF advised Extell in the transaction, while commercial real estate services firm Jones Lang LaSalle Inc. stood in for Nordstrom. The retailer had sought assistance in its pursuit of the right space for a Manhattan location on many occasions in the past. In 2007, the company tapped Madison Retail Group to provide site selection services.
Although Nordstrom won’t make entrée into Manhattan for about six years, if the current retail market holds up, the company’s timing will be just right. In the last 12 months, sales in New York City have skyrocketed 10.6 percent, due in no small part to foreign tourists’ desire to capitalize on favorable exchange rates, according to a second-quarter report by Marcus & Millichap Real Estate Investment Services. Over the last 12 months, visitor volume has reached all-time highs.
“It makes perfect sense that Nordstrom–one of the premier names in retailing–would want a flagship store in New York, the world’s premier city for retailing,” Mayor Bloomberg said at today’s press conference. “This is very exciting news for New Yorkers and the millions of tourists who come to our city to shop each year, and this new addition to the West Side of Manhattan is another sign of the private sector’s confidence in New York City.”
However, Nordstrom isn’t only in a New York State of mind, although it may appear that way, as one of the two other full-line stores it plans to open within the next couple of years is expected to be a 138,000-square-foot shop at Taubman Centers Inc.’s proposed Mall at Oyster Bay on Long Island. Beyond the Empire State, a 138,000-square-foot store is on track to debut at Taubman’s $405 million Mall of San Juan project in Puerto Rico in 2014.