Calvin Klein Inks Deal With Shvo For Soho Flagship

Calvin Klein will open a New York City flagship next year at Michael Shvo’s Soho retail property.

The PVH Corporation-owned clothier is taking 7,300 square feet at 530 Broadway, according to a spokesperson for the developer who declined to disclose the asking rent or length of the lease.

PVH CEO Stefan Larsson revealed plans for the new flagship during an earnings call on Thursday, dubbing it “part of Calvin’s brand-building strategy in key markets.”

A Shvo-led partnership bought the 11-story property from Jeff Sutton and Joe Sitt in March 2020 for $382 million. The office and retail property on the corner of Spring Street combines three adjacent structures and was redeveloped last year.

Calvin Klein abruptly closed its 20,000-square-foot New York City flagship at 654 Madison Avenue in 2019, according to Women’s Wear Daily, which first reported the Soho flagship. The brand opened a Paris flagship in June.

Manhattan’s retail market has made a post-pandemic recovery with a remarkable drop in availability last quarter. Only 14.7 percent of prime retail space was available from July to September, the lowest ever recorded in the city, according to a JLL report. In 2021, the second year of the pandemic, availability peaked at 28 percent.

Just 202 retail spaces in Manhattan were available during the third quarter, a drop from 210 in the previous quarter. This market is much tighter than it was before the pandemic; availability averaged 21 percent in 2019.

Soho has seen an especially dramatic recovery. Availability rates in the neighborhood have fallen from 34.6 percent in 2021 to just 11.5 percent this quarter, according to the JLL report. The current asking rent is $301 per square foot, a modest 3 percent increase year-over-year.