Daffy’s Stakes Claim in Times Square

NEW YORK CITY-Off-price clothing chain Daffy’s is entering the Times Square market via a 30,000-square-foot lease in the former New York Times Co. building at 229 W. 43rd St. The retailer plans a third-quarter 2011 opening at the 767,000-square-foot property, now known as the Times Square Building.

In a release, Joshua Strauss, VP at Robert K. Futterman & Associates, says the space represents “a great opportunity for Daffy's to enter the Times Square market, which has incredibly high foot traffic and excellent co-tenancy.” Strauss represented the ownership of the Times Square Building along with RKF chairman and CEO Robert K. Futterman and director Spencer Levy. Monroe Kaufman of Kaufman Realty Services and Art Burak represented Daffy’s.

Strauss adds that the RKF team has leases out “that when combined with what we have already leased represent more than 90% of the 250,000-plus square feet of retail space at the Times Square Building. Ownership has been extremely flexible and willing to work with tenants to make deals happen."

Daffy’s will have an entrance fronting 44th Street in the 16-story landmarked property, which also counts the Discovery Times Square Exhibit and Bowlmor Lanes among its retail tenants. The Wall Street Journal first reported the deal this past Thursday.

When Africa Israel USA bought 229 W. 43rd from Tishman Speyer Properties for $525 million in 2007, it planned to give over most of the property to office space. However, Africa Israel USA’s CEO, Tamir Kazaz, told the WSJ last week, “In the past 18 months the demand for large office space diminished and we decided the building needed to be repurposed to take advantage of Times Square's amazing foot traffic.” The company completed a $267-million refinancing of the property in 2009, ceding 50% control to joint venture partner Five Mile Capital.

For Daffy’s, which marks its 50h anniversary next year, the lease heralds a new wave of expansion, both locally and nationally. It reportedly plans to open 14 more New York City-area stores by 2015.