Partners Buy Out 650 Fifth Retailer; Will Reposition Space

NEW YORK CITY-Retailer Juicy Couture has accepted a buyout of its space at 650 Fifth Ave., where SL Green Realty Corp. and partner Jeff Sutton earlier this month got the go-ahead from a federal judge to acquire a 49-year leasehold interest for all the retail space in the 36-story building. The terms of the buyout were not disclosed; the New York Post reported on Wednesday that the partnership was paying Juicy Couture $50 million to vacate the space.

The buyout will allow SL Green and Sutton to combine Juicy Couture's existing basement, grade-level and second floor retail space, totaling about 18,000 square feet, with 11,000 square feet of additional vacant space on the third floor. This will hasten the partnership's ability to reposition the building's retail corner location along the heavily traveled Fifth Avenue corridor in Midtown.

“By executing this transaction, we are immediately creating substantial value for the leasehold and fee interest at the property,” says SL Green president Andrew Mathias.  “Our conversion will enable a retailer to establish a vertical store in a prime Fifth Avenue location with nearly 30,000 square feet of space.” He adds, “Working in partnership with Jeff Sutton, we continue to build what we believe is New York City's best retail real estate portfolio.”