Avoiding speculation that the Ladies’ Mile shopping corridor was losing its juice, Burlington Coat Factory is doubling its space by moving into 620 Sixth Ave., the 1896 cast-iron building that is one of the most iconic structures in street between West 14th and West 23rd Streets.
The outfitter signed on for just under 80,000 square feet, eating up what was left of the nearly 100,000 square feet of retail space left behind by the bankrupt Bed Bath and Beyond. The three-level lease nearly doubles Burlington’s presence in the corridor, where it will vacate 40,000 square feet at 695 Sixth Ave.
Burlington’s 12-year deal marks another success back from the brink for building joint venture owners RXR Realty and Hudson Bay Capital, which recapitalized 620 Sixth with a $320 million loan when Hudson Bay came on board as a partner in October.
The pandemic and tenant bankruptcies left 620 Six semis empty in 2021. Today, of the 500,000 square feet of office and retail space, almost none remains available after recent transactions, said RXR managing director Bill Elder. (The entire building is 700,000 square feet, but property services syndicate BJ 32 owns 200,000 square feet as a condominium unit).
“It’s practically all leased except for 8,000 square feet where we have a great store,” Elder said.
He declined to name the future tenant.
The asking rent for Burlington was $100 per square foot for the space in the middle of the building and $175 per square foot for the two corners.
Meanwhile, both TJ Maxx and Marshalls signed five-year retail renewals for approximately 68,000 and 38,000 square feet, respectively.
Landlords also had their hands full on the office front as WeWork left its big block behind.
“We had to reposition the whole building,” Elder said.
It didn’t take long. Tech firm Palantir signed for 140,000 square feet, mobile banking app Current took 72,000 square feet and Cole Haan renovated to 62,000 square feet.
Burlington was represented by CNS Real Estate’s Cliff Simon. The RXR was reproduced in house by Daniel Birney and by Richard Skulnik, Lindsay Zegans, Ben Sabin and Mary Schwagerl of RIPCO.
The city-designated nine-block Ladies Mile Historic District shows no evidence of a retail exodus. Superstores Trader Joe’s, Container Store, and Old Navy share the blocks with such diverse users as Men’s Wearhouse, Blick Art Supplies, Nut Factory, “wellness” restaurant Oases, and Genius Gems, a play-and-learn experience built around tiles. magnetic.
Vacancies are mostly in small spaces. Sources said the space Burlington will leave behind will not be on the market. The unconfirmed rumor is that the owner of 695 Sixth Cudge Realty hopes to convert the building into apartments.
Meanwhile, the big change is coming two blocks north. The National Museum of Mathematics leased over 34,000 square feet at 635 Sixth Ave. on the corner of West 20th Street. It is nearly twice the size of the museum’s original space at 11 E. 26th St. and even larger compared to his current window at 225 Fifth Ave.
It was not known what the museum paid to rent the new space, but the numbers clearly added up.
The deal is a combination of a direct lease with landlord Spear Street Capital and a sublease from former tenant Lowe’s, Commercial Observe reported.
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