Fifth Avenue

In the intense competition for coveted space on the world’s most expensive retail boulevard, international luxury fashion giants are set to clash. LVMH Moët Hennessy Louis Vuitton, the powerhouse behind iconic brands like Louis Vuitton, Christian Dior, and Tiffany & Co., is reportedly in talks to acquire 745 Fifth Ave., a 35-story tower gracing the renowned shopping avenue, according to sources cited by Bloomberg. The lower three floors of this Fifth Avenue gem currently house a Bergdorf Goodman men’s store, and LVMH is engaged in a fierce bidding war with other contenders vying for ownership, as reported by Bloomberg. Neither Bergdorf’s parent company, Neiman Marcus, nor Paramount Group, the owner of 745 Fifth Ave., responded immediately to Bisnow’s request for comments.

The building also accommodates tenants such as private equity firm Eurazeo and law firm Haug Partners, according to the building’s official website. LVMH, known for its aggressive acquisition strategy, declared a spree for retail properties last year, investing nearly $2.7 billion globally. This included securing prime locations on Paris’ Champs-Elysées corridor and a central London site, as reported by Bloomberg. LVMH CEO Bernard Arnault emphasized the company’s pursuit of AAA locations, stating during an earnings call, “We try to secure and buy the best possible locations for our companies. If you take Fifth Avenue in New York, we have three of the best corners there are.”

This rumored acquisition comes on the heels of a major move by Gucci’s parent company, Kering, which recently spent a staggering $963 million on a 115,000 square feet retail condo at 715-717 Fifth Ave. In the previous month, Italian luxury fashion house Prada made a substantial investment of approximately $820 million, acquiring adjacent buildings across the street. Both of these deals were orchestrated by real estate mogul Jeff Sutton’s Wharton Properties. The battle for supremacy on Fifth Avenue’s luxury retail landscape shows no signs of cooling down.

Source: Bisnow

The renowned Italian fashion house, Prada, announced the acquisition of the building housing its current store on Fifth Avenue in New York for a substantial $425 million. Since 1997, Prada had been leasing the five-story space at 724 Fifth Ave. and executed the purchase using internal resources in cash.

Prada emphasized the strategic significance of the property’s location, citing its increasing rarity and long-term potential as key factors in the decision. The 12-floor building, beyond serving as a retail space, holds the potential to offer office premises and storage facilities for the Hong Kong-listed company, according to the company’s statement.

Notably, New York’s Fifth Avenue holds the title of the world’s most expensive retail street, as indicated by a global ranking by real estate services firm Cushman & Wakefield. Despite robust growth in the Asia Pacific, Japan, and European markets, Prada faced challenges in the wider Americas region this year, with retail sales experiencing a 1.3% decline in the first nine months.

Source: The New York Post