Prada buys New York’s Fifth Avenue store building for $425 million By Reuters

© Reuters. FILE PHOTO: Prada products are seen at the Woodbury Common Premium Outlet store in New York’s Central Valley, USA, February 15, 2022. REUTERS/Andrew Kelly/file photo

MILAN (Reuters) – Italian fashion house Prada (OTC:) paid $425 million to buy a building on New York’s Fifth Avenue where it currently operates stores, the company said on Wednesday.

Prada, which has leased the five-story store at 724 Fifth Avenue since 1997, said it used internal resources to pay the price in cash.

“The board believes that the location of this property offers high strategic value characterized by increased scarcity and long-term potential,” Prada said in a statement.

He added that in addition to retail space, the property, which has a total of 12 floors, could also provide office buildings and warehouses for Hong Kong-listed companies.

New York’s Fifth Avenue is the most expensive retail street in the world, according to a global ranking by real estate services firm Cushman & Wakefield (NYSE:).

The broader Americas has been a weak spot for Prada this year. In the first nine months, retail sales fell 1.3%. This contrasts with double-digit growth in Asia Pacific, Japan and Europe markets.

Eastdil Secured, a real estate investment bank, advised the seller, 724 Fifth Fee Owner LLC, on the transaction.