Business

Nordstrom buys land for tower in Midtown

Owners Erik and Peter Nordstrom are bolstering their commitment to Manhattan with the $102.5 million purchase of the land under the planned namesake retail flagship.

Owners Erik and Peter Nordstrom are bolstering their commitment to Manhattan with the $102.5 million purchase of the land under the planned namesake retail flagship. (
)

Nordstrom will be settling on West 57th Street for the long haul.

The Seattle-based retailer has shelled out $102.5 million to own the site of its future Midtown flagship store, which will anchor one of the tallest buildings in the world, according to property records reviewed by The Post.

As first reported by The Post last June, the upscale chain will open its first New York department store at 225 W. 57th St. — with an entrance on the east side of Broadway.

The store will occupy two floors below grade and five floors above of an 88-story residential condominium tower that will stretch 1,550 feet, according to property records.

That’s taller than the Empire State Building, which is 1,454 feet to the tip of its antenna, and nearly as tall as the upcoming One World Trade Center, whose official height of 1,776 feet is yet to be certified, but would also include its 408-foot tall spire.

Nordstrom, in public filings last week, said its new store, slated to open in 2018, will have 175,000 square feet of floor space. Last year, Nordstrom said the store will span 285,000 square feet. The larger figure includes additional facilities such as mechanical space below grade, developer Extell’s spokesman confirmed.

At $586 per square foot, Nordstrom’s purchase “of a fee below a plane” – essentially the land and associated development rights without additional air rights — is a down payment for the future delivery of its store. The deal could also give Nordstrom control of the site should something go awry with its development by New York real-estate mogul Gary Barnett who heads Extell Development and retained the air rights “above a plane.”

A spokesman for Barnett said the remainder of the payments will be made in installments over time.

Last week, Barnett — now armed with more than $100 million to begin development of the giant tower — cleared the way for Nordstrom’s payment by purchasing the last piece of a sideways T-shaped land puzzle between West 57th and 58th streets, with other frontage on Broadway, that will become the site of the project.

Barnett bought the last holdout — the 20.2-foot-wide Beethoven piano building at 223 W. 58th St. for $25 million.

At the same time, Nordstrom became responsible for a token $1 million mortgage from a Blackstone entity, while Barnett obtained a new $300 million acquisition mortgage from Blackstone and paid off a previous HSBC loan of just under $250 million.

Barnett has agreed to convey the completed store to Nordstrom as a condominium. No condominium plan is yet filed.

The Nordstrom deal was announced last June by Mayor Bloomberg and Barnett along with Erik and Peter Nordstrom.

To date, the city Buildings Department has not approved plans for the new building. “We are simply going through the natural evolution of the design of the building and we are still developing the necessary plans for approval,” the spokesman for Barnett emailed.

Meanwhile, Beethoven piano store owner Carl Demler is now in contract to buy a building across the street, said his broker Ronen Korin of Manhattan Connection.

“He wasn’t so eager to sell,” added Korin, leading to the high price for the small building on what was known as Piano Row.

The sale to Barnett also wiped out previously paid off property tax liens on Demler’s building dating back to 1996 and 1999.

Nordstrom has also closed the Soho space that was the site of its announcement last year that was occupied by Treasure & Bond, a 3-year-old venture that was supporting city children’s charities.

That retail condo is owned by city comptroller candidate and former Gov. Eliot Spitzer.