Old Navy is signing a 55,000-square-foot lease in Manhattan and will maintain its presence in Herald Square.
The retailer stated that it's a long-term deal that will provide access to two floors at Herald Towers, with the space set to open in 2026. According to Old Navy, the deal is the largest retail lease completed in the city so far in 2025 and one of the largest struck over the past five years.
Effectively, the Gap-owned brand will relocate from its existing space at 150 West 34th. The plans are to make the new location its next-generation flagship, according to Old Navy.
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Old Navy announced that the new store at 50 West 34th Street will offer customers an interactive and experiential experience, along with product assortments designed to appeal to both tourists and locals.
Along with the appeal of Herald Square, Old Navy President and CEO Haio Barbeito stressed the importance of staying in New York, which, according to him, attracts 60 million visitors each year.
Also, this isn't the first time that the owner of the building, JEMB Realty, has done business with Gap, which once occupied office space at Herald Towers.
"This is the perfect location to unveil a vibrant new retail experience,” Morris Bailey, chairman of JEMB, said.
“The lease is also a testament to the longstanding relationship between JEMB and Gap Inc. We negotiated the original lease directly with Gap Inc.’s founders, Don and Doris Fisher, and are gratified to be working with the company's leadership again today.”
Originally, the property was known as Hotel McAlpin in the early 1900s before it was converted for residential use in 1980. Then, JEMB acquired it in 1999 and renamed it to Herald Towers. The 25-story mixed-use building now contains 700 residential units and 100,000 square feet of ground-floor retail space. The entire asset spans one million square feet.
Currently, 50,000 square feet of retail space remains available at Herald Towers.
On the lease, Newmark represented Old Navy, while JEMB received self-representation from subsidiary LMJ Realty.
In the first quarter, Manhattan drew $2.7 billion in investment sales across 84 transactions, representing a 17 percent plunge and a 12 percent rise, respectively. Meanwhile, retail showed resilience individually, with dollar volume surging 21 percent to $604 million, while transitions increased by five percent.
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