Monday, April 19, 2010

Comings and Goings

The Moody's Real CPPI dropped 2.6% in February - following three months of increases. It's off 41.8% from the peak.

Uniqlo (We'll have to ask my wife what type of retailer they are - ADR FRCOY) got a 1/3 off deal on their rent at 666 Fifth Avenue (several deals) for the street level retail at just $20mm per year (down from $30mm asking). It's being touted as a record breaking deal, but it's not clear which record is being broken - there certainly have been larger over all deal sizes, and the price per square foot doesn't seem like a record breaker... In fact, the square footage must be wrong. It's listed as 89,000 everywhere I look, but that's just $224 psf - there are plenty of leases at $2,000 psf for fifth avenue retail (Abercrombie & Fitch is in the same building at $2+k, although their space is dark). There is an extra zero somewhere in there. Actually, I don't think the floor has that much space available. Abercrombie is out, Brooks Bros. is out. Maybe it stretches up into the office space and actually helps out the CMBS loan (which does not include retail) - the $psf might actually make more sense that way too (assuming the 89k is correct). It could be - I see they have a 51k square foot space at 546 Broadway (JPMCC 2007-LDPX).


Dark Space said...

Our sources (aforementioned wife, who is actually a fashion designer and whose office is actually on Fifth - so a bonafide source) informs me that they sale "trendy hipster clothing...only 1 other location in USA...".

The email then went on and on about how wonderful I am and how I needed to come home from work, but I'll spare you all the details.

Rational Realist said...

here is a link to an article on the Uniglo lease. ground floor paying $2,000 psf.

Dark Space said...

Good find - that actually makes sense.