Located on-half block from Union Square, the building sits nextto a Chanel store and a Saks Fifth Avenue Men's Store, and acrossthe street from where tenant improvements are underway for a Pradastore. Other retailers in the immediate vicinity include Escada,Burberry, Gucci, Tiffany & Co. and Armani, and Cartier and DeBeers also are planning to open stores in the area.

Festival Companies President Mark Schurgin tells GlobeSt.com heplans to use the departure of the building's current primarytenant, Ann Taylor, as an opportunity to bring in anotherworld-class brand. Schurgin says his company is in talks withseveral high-end retailers to backfill the 26,000-sf, four-levelspace. The other tenants in the building are Bredebro,Denmark-based shoemaker Ecco and Boucheron, a high-end jewelerbased in Paris.

The blended rate for similar multi-floor spaces in the heart ofthe Union Square shopping district is approximately $10 per sf permonth. Schurgin says he hopes to have a new tenant open forbusiness in the space by the 2008 holiday shopping season.