After engaging in a bidding war with luxury conglomerate LVMH, Ralph Lauren emerged victorious as the owner of its own Soho storefront.
The luxury fashion company purchased 109 Prince Street in the Manhattan neighborhood for $132 million, the Commercial Observer reported. The seller of the retail condominium was Swiss investor and art financier Jean-Pierre Lehmann.
Ralph Lauren initially leased the property in 2010, opening its Polo Ralph Lauren Store a year later. Its lease was due to expire next year. The retailer said in a statement that the acquisition preserves its “presence at this iconic location for many years to come.”
Accounting firm Citrin Cooperman assisted Lehmann on the deal, but it’s unclear who brokered the transaction.
Lehmann purchased the corner spot in 1991 for $3 million before embarking on a renovation. The five-story property has included three live-work artist condominium spaces since 1997.
Ralph Lauren fended off a challenge for the Prince Street location from the French conglomerate LVMH, which has been on the hunt for space to relocate its local Tiffany & Co. hub from 97 Greene Street. It also tried leasing two other Prince Street locations in the past year, to no avail.
Ralph Lauren is hopping on one of Manhattan’s notable retail trends of recent years, becoming the latest company to buy its own storefront outright. Other examples include Prada’s string of deals amounting to $848 million for a trio of Fifth Avenue retail condos and Kering’s purchase of another Fifth Avenue retail condo for $963 million.
Ralph Lauren recently reduced its Plaza District headquarters space at Vornado Realty Trust’s 650 Madison Avenue, cutting roughly 100,000 square feet from its lease. It also reduced its rent per square foot by about 30 percent.
At the same time, the company also signed a 10-year renewal for retail space at 867 Madison on the southeast corner of East 72nd Street.
— Holden Walter-Warner
Read more
Ralph Lauren nabs 30% rent cut in new headquarters deal
Gucci and Prada now own their buildings. What’s their plan?
Ralph Lauren renews Madison Ave flagship, downsizes HQ
