High-end menswear brand strikes deal while landlords, tenants fight over rent
UPDATED, Aug. 15, 2020, 3:28 p.m.: As retail tenants and their landlords battle over unpaid rent, one high-end brand has struck a deal for a new store in Soho.
Paul Stuart has signed a lease for 1,000 square feet across a two-level spread at Scott Goldfarb’s 505 Broome Street, according to the deal’s brokers. It is located adjacent to the Oliver Peoples eyewear store at the corner of West Broadway.
Known for its menswear, Paul Stuart is opening its first customLAB boutique at the site. Similar to Suitsupply and MySuit, the brand launched the made-to-measure experience last year.
Brokers declined to provide asking rents or the term of the deal. But in the area, depending on size and location, rents now range from $100 to $400 per foot, according to sources.
The clothier decided to take advantage of what’s been a tumultuous but potentially advantageous retail market for tenants in New York City to open a store to support the collection, according to a spokesperson. Paul Stuart, whose flagship has been open at Madison Avenue and East 45th Street since 1938, also just opened a new store at 50 Main Street in Southampton.
Ripco’s Josh Siegelman, who represented the tenant in the deal, says the space is “a good fit” for them as the area has blossomed with other menswear retailers including Suitsupply, Indochino and Golden Goose.
“It’s a nice co-tenancy to support what they want to do,” Siegelman said. “It’s a historical, iconic brand and super excited about these new stores and entering the Soho marketplace.”
Paul Stuart will replace the Italian brand Michele Negri, which will vacate by the end of August.
Deeds show that the small building was owned by developer Harry Macklowe in the 1970s.
Goldfarb, who bought the building in 1996, said there were two retailers competing for the spot. Brokers say retailers have come out of a pandemic stupor over the last two weeks to take advantage of the drop in pricing and to start focusing on future occupancies.
In May and June, protests over the killing of George Floyd turned violent in some instances. Stores in Soho like the Balenciaga shop on Mercer Street were looted. Many retailers resorted to boarding up their storefronts — some had already done so when they shuttered earlier in the pandemic. Since then, other retailers have begun reopening.
Chris Owles and Sarah Shannon of Sinvin represented Goldfarb in the transaction, which started as the virus hit but was just finalized.
“There has been softness for a while and it’s created opportunities for brands to enter the market,” Owles said.
Update: This article previously misstated Chris Owles’ name.