- Brookfield Asset Management is exploring the sale of the retail portion of 685 Fifth Ave.
- The retail property, which houses luxury brands like Coach and Stuart Weitzman, is expected to fetch between $300M–$500M.
- Fifth Avenue has seen an uptick in retail purchases by both luxury and non-luxury brands, including Kering SA (Gucci), Prada, Uniqlo, and Ikea.
According to Bloomberg, Brookfield Asset Management Ltd. (BN) is exploring the sale of its retail property at 685 Fifth Avenue, home to luxury retailers like Coach and Stuart Weitzman.
Deal Details
Sources familiar with the matter indicate that Brookfield is seeking a price in the low- to mid-$300M range, although there is some speculation the property could fetch up to $500M.
The retail portion of 685 Fifth Avenue, located at the southeast corner of 54th Street, is also home to DJI Hasselblad. The newly completed Mandarin Oriental residences are situated above the retail space, though they were developed separately.
Brookfield has enlisted Eastdil Secured to handle the potential sale, which is in its early stages. Representatives from both Brookfield and Eastdil declined to comment.
Retail Bloom
Several major brands, particularly in the luxury sector, have been actively purchasing retail properties along Fifth Avenue.
Recently, companies connected to Kering SA, the parent company of Gucci, and Prada-related entities have also acquired properties in the area.
This retail trend is not limited to luxury brands, either. Ingka Investments, the investment arm of the largest Ikea retailer, recently invested in a new tower development on Fifth Avenue, while Uniqlo bought its latest NYC store space at 666 Fifth Avenue earlier this year.
Broader Trend
“The momentum has gone from being a purely luxury phenomenon to an ‘Everyone wants Fifth Avenue’ phenomenon,” said Will Silverman, Managing Director at Eastdil Secured, who has advised on several large transactions in the area.
