A new joint venture will give Ardian majority ownership in New York City retail property, 715-717 Fifth Avenue, under a $690 million deal. This marks the private investment firm's first real estate transaction in the U.S.
Kering, the previous majority owner of 715-717 Fifth Avenue, will retain a 40 percent stake in the asset, with Ardian holding 60 percent.
The property, located in Manhattan, features 115,000 square feet of multi-level luxury retail space.
Eastdil Secured advised Ardian on the deal.
"This transaction reflects Ardian’s expertise in structuring innovative partnerships and securing assets with exceptional fundamentals,"
Omar Fjer, head of real estate France and managing director at Ardian, said in a statement.
"We are truly committed to acquiring and managing ultra prime assets in the most sought-after locations, which deliver lasting value for our stakeholders.”
Simultaneously with the JV, Ardian announced the sale of its French fresh food retail unit, Prosol, to Apollo, which will now operate a majority stake.
Additionally, this isn't the first time that Ardian and Kering have worked together. The two announced an investment agreement in January for three Paris assets, including a hotel. Similarly, the deal gave Ardian 60 percent ownership in the portfolio. This, along with the New York move, aligns with Ardian's long-term investment strategy.
"Like the investment agreement already signed in Paris, this transaction allows us to secure another long term highly prominent retail location for our Houses while enhancing our financial flexibility," Jean-Marc Duplaix, chief operating officer of Kering, said.
While headwinds remain in the economy due to trade policy and the weak jobs market, the food and beverage segment of retail has been key in driving office activity in NYC. A recent Marcus & Millichap report noted that food and beverage demand helped drive down vacancy for office in Downtown Manhattan by 90 basis points to less than four percent in the first half of 2025. Overall, this year, the brokerage is calling for a 10 basis point drop in NYC retail vacancy, with rents in the sector increasing 3.4 percent above the long-term average to $64.25 per square foot.
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