New York—The 20-plus year journey to find a location for its first Manhattan store ended today for Nordstrom. The Seattle-based retailer confirmed that it signed an agreement with Extell Development Company to build a 285,000 square-foot store near Columbus Circle that will open its doors in 2018.
Nordstrom’s seven-story store will anchor a skyscraper comprised of “mixed-use, retail, hotel and high-rise residential tower “still in the planning stages.”
As per rumors circulating in the New York press on Wednesday, the site comprises a 40,000-square foot block, which fronts on the northern side of 57th Street between Broadway and Seventh Avenue and extends to 58th Street, where once the original Hard Rock Café was housed. Reportedly the deal cost Nordstrom $300 million.
“This has been a long time coming for us, as Nordstrom has sought a NYC location for many years. We couldn’t be happier about the opportunity to be a part of this terrific development project with Extell and feel the location works extremely well for us,” said Erik Nordstrom, president of stores for Nordstrom, Inc. “We look forward to opening our doors and we view this as our chance to have our best Nordstrom store in the best retail city in the world.”
Bloomberg: ‘Sign of Private Sector Confidence” in NYC
News of Nordstrom’s entrance into Manhattan was applauded by retail, real estate and political leaders.
Speaking at a press conference with Gary Barnett, Extell’s president, and Peter Nordstrom, Mayor Michael Bloomberg hailed the Nordstrom deal as proof that the New York retail scene is vigorous and growing.
“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,” said Bloomberg. “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.”
“They’ve been spotted in New York now for the past 20 years,” Benjamin Fox, executive vice president for retail leasing at Massey Knakal Realty Services, said. “To say this was long in the making is an understatement.”
According to Barnett, one of Manhattan’s most active developers, excavation work on the site could begin as early as the first quarter 2013. Extoll is building the 90-story One57, New York’s tallest residential tower, a block east of the Nordstrom site.
Derek Trulson, international director at Jones Lang LaSalle, which represented Nordstrom in the transaction, called the deal critical for the future of Manhattan’s West Side.
Flagship Relatively Small in NY Terms
“New York has not seen a new fashion specialty store of Nordstrom’s quality and importance in decades,” Trulson said. “We could not have hoped for a better location, and Nordstrom will now anchor the West Side retail experience at 57th and Broadway. This is a creative real estate deal and build-to-suit that works for Nordstrom as a luxury retailer over the long term.”
While Nordstrom Inc. has opened a Rack store at Union Square and its charity-themed Treasure & Bond specialty boutique in SoHo, Nordstrom was unable to find a Manhattan venue large and modern enough to accommodate a full-line store.
Yet despite its proposed size, the Nordstrom flagship will be among the smallest in Manhattan. JCPenney, the last national chain to open at Manhattan Mall location in 2009, is smaller than the proposed Nordstrom, at about 153,000 square feet.
However,Saks Fifth Avenue’s flagship across from Rockefeller Center is about 1 million square feet and Bloomingdale’s 59th Street flagship has about 839,900 square feet, according to the Real Estate Board of New York. And Macy’s Herald Square boasts 2.1 million square feet with 1.1 million square feet of selling space.