Rejecting speculation that the Ladies Mile shopping corridor is losing its juice, Burlington Coat Factory is doubling its space by relocating to 620 Sixth Avenue, an 1896-turned-cast-iron building that is among the most iconic structures on the avenue. Is one of. West 14th and West 23rd Streets.
The clothing magnate signed on for just under 80,000 square feet, eating up what was left of the roughly 100,000 square feet of retail space left by bankrupt Bed Bath & Beyond. The lease for three levels nearly doubles Burlington’s presence in the corridor, where it will leave 40,000 square feet of space at nearby 695 Sixth Avenue.
The 12-year Burlington deal marks another success for building joint venture owners RXR Realty and Hudson Bay Capital, who recapitalized 620 Sixth with a $320 million loan when Hudson Bay came on board as a partner in October.
Bill Elder, RXR managing director, said half of the 620 units became vacant in 2021 due to the pandemic and tenant bankruptcies. Today, of the 500,000 square feet of office and retail space, almost none is available after recent transactions. (The entire building is 700,000 square feet but property-services consortium BJ32 has 200,000 square feet as a condominium unit).
“Virtually all of it is leased except 8,000 square feet, where we have a great store opening,” Elder said.
He refused to reveal the name of the incoming tenant.
Rent for Burlington was $100 per square foot for the middle building space and $175 per square foot for the two corners.
Meanwhile, TJ Maxx and Marshalls both signed five-year retail renewals for about 68,000 and 38,000 square feet, respectively.
Owners have also had to go all-in on the office front after WeWork left their huge block behind.
“We had to reposition the entire building,” Elder said.
It didn’t take much time. Tech firm Palantir signed for 140,000 square feet, mobile banking app Current signed on 72,000 square feet, and Cole Haan renovated on 62,000 square feet.
Burlington was represented by Cliff Simon of CNS Real Estate. The RXR was replicated in-house by Daniel Birney and Repco’s Richard Skulnik, Lindsay Zegans, Ben Sabin, and Mary Schwagerl.
The nine-block-long, city-designated Ladies Mile Historic District shows no evidence of a retail exodus. Trader Joe’s, the Container Store, and Old Navy’s giant outpost Men’s Warehouse share the block with diverse users like Blick Art Supply, Nut Factory, “wellness” restaurant Oasis, and Genius Gems, a game built around magnetic tiles—and -It’s a learning experience.
Vacancies are mostly in small places. The space Burlington will leave will not be on the market, sources said. Unconfirmed word is that 695 Sixth landlord Kaz Realty hopes to convert the building into apartments.
Meanwhile, two blocks north, big change is coming. The National Museum of Mathematics leased more than 34,000 square feet of land at 635 Sixth Avenue at the corner of West 20th Street. It is nearly twice the size of the museum’s original location at 11 E. 26th St. and even larger than its current pop-up at 225 Fifth Ave.
It wasn’t known how much the museum is paying to rent the new space, but the numbers clearly add up.
Commercial Observer reported that the deal is a combination of a direct lease with landlord Spear Street Capital and a sublease with former tenant Lowe’s.
