FASHION icon Burberry is negotiating for new offices, plus a piece of the city’s skyline.
With a lease for 68,448 feet on the drawing boards, sources say the fashion company’s deal would include a retail store as well as its name in lights at the top of 444 Madison Ave. – finally deposing New York magazine’s 10-year reign atop the building.
When Westbrook Partners bought the ground lease on the building last fall, it charged CB Richard Ellis with finding a suitable “anchor” tenant for its largest available space along with the ability to take on the iconic top spot.
According to CoStar Group, the asking rent for the subject space on the 13th through 16th floors is $85 a foot.
Sources say Burberry, which would be moving to Madison Avenue from 1350 Avenue of the Americas, would also take the approximately 5,000 foot retail store on the northwest corner of 49th St., which is at the south end of the building.
Joan Siegel of Siegel Consultants referred our call to Burberry.
Paul Amrich of CBRE, Westbrook’s rep, didn’t return a call for comment.
New York magazine took over the very visible signage from Newsweek when the latter publication moved out of the building after three decades.
New York itself recently relocated to Hudson Square, although its signage still lights the Madison Avenue night.
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The Macklowe/EOP portfolio buildings being marketed by Eastdil Secured are starting to fall into the hands of their next owners.
First to go is the smallest, Tower 56 at 126 E. 56th St.
The 171,571 foot tower is rumored to be in contract to Chicago-based Transwestern Investment Co. for about $160 million, equal to roughly $925 a foot.
It marks Transwestern’s return to the city after selling 360 Madison Ave. and 28 W. 44th St. in 2003 and 2005, respectively.
Calls to Transwestern and Eastdil were not returned.
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Now that it’s losing its shop at 666 Fifth Ave. to what sources tell us was a $47 million buyout, Brooks Brothers is expanding its store at 346 Madison Ave.
The retailer just leased 36,000 feet of retail and offices in the building next door at 11 E. 44th St., bringing it to 100 percent occupancy.
The new space includes the former J. Press shop where Brooks is likely opening a women’s store.
The retailer will also have new office space on the second, fourth and eighth floors.
The ground floor’s 6,000 feet of retail space had a tab of $180 a foot, a “healthy” rate for a side street building in that area.
However, it’s still a lot less than what it could fetch if it was on Madison.
Ed Goldman and Bruce Weinberg of CB Richard Ellis represented the parent, Retail Brands.
William Cohen of Newmark Knight Frank worked for the 11 E. 44th building owner, DCD and ING Clarion, which bought it two years ago knowing the leases were turning over.
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Ellen Tracy is moving its headquarters to 28,000 feet comprising the entire 32nd and 33rd floors of 1400 Broadway.
The brand will move from 1441 Broadway, where former parent Liz Claiborne is based. New owner the Fashionology Group wants it to have its own identity.
Cohen and Michael Frantz of Newmark Knight Frank repped the fashion company, while Brian Waterman and Jona than Fanuzzi also of NKF, represented the W&H Property, which is undergoing an $81 million renovation,
The building had an asking rent of $55 a foot.