American Eagle Takes Office, Retail Space

For the office lease, Daniel Gohari, VP and director of commercial assets for building owner the Moinian Group, says in a statement that the property is now fully leased. Other tenants include Turner Broadcasting, Atari, Marvel Entertainment and CIBC, as well as 50,000 sf of retail space.

The company purchased the building in July in a joint venture with Goldman Sachs for $250 million, sources say. The property was bought from a joint venture of Murray Hill Properties and GE Asset Group, which had purchased the building in December 2004 for $170 million, sources say. A Moinian spokeswoman did not respond for comment on the lease rate.

Bernard Weitzman and Jeffrey Kilimnick with CB Richard Ellis negotiated on behalf of American Eagle Outfitters, while Michael Dreizen and Andrew Udis with Newmark Knight Frank represented Moinian.

On the retail end, the new American Eagle flagship store in Times Square will be the company's largest, according to the retailer. Jeff Sutton, in a joint venture with SL Green Realty Corp., will build a structure designed specifically for American Eagle Outfitters from the ground up.

"American Eagle Outfitters looks forward to creating a world-class shopping destination for the people of New York, as well as customers from around the world at the Times Square flagship store," Jim O'Donnell, CEO of American Eagle Outfitters, notes in a statement. "Working closely with Jeff Sutton and SL Green, our goal is to set a new standard in specialty retail and store innovation."

The property will comprise three levels of retail space for AEO brands including American Eagle and the company's intimates and dormwear line, aerie. Additionally, the new flagship will feature more than 15,000 sf of multi-media external signage rising 25 stories high. SL Green was unable to discuss any financial related to the deal. Calls to American Eagle Outfitters were unreturned by press deadline.