Burlington is coming in from the cold, signing a lease covering double the space it leaves behind down the avenue.
The retailer inked a deal for 78,000 square feet at RXR and Hudson Bay Capital’s 620 Sixth Avenue, the New York Post reported. The 12-year lease means it will leave 695 Sixth Avenue, where the company occupied only 40,000 square feet.
Burlington’s big lease covers three floors of the Flatiron District property previously occupied by Bed Bath & Beyond. The asking rent was $100 per square foot for the mid-building space and $175 per square foot for the pair of corners.
CNS Real Estate’s Cliff Simon represented the tenant, while RXR’s Daniel Birney and a RIPCO team including Richard Skulnik represented the landlord.
There’s virtually no office or retail space available across the 500,000 square feet of 620 Sixth Avenue owned by RXR and Hudson Bay, according to RXR’s Bill Elder. There’s only an 8,000-square-foot retail hole, which Elder says will be filled by a tenant he declined to identify.
The journey at 620 Sixth Avenue has included some chaotic recent developments.
Five years ago, the property appeared to be in good shape and RXR was the owner of a $421 million mortgage. But with the pandemic came an exodus that cleared out half the space and left the property worth less than its debt. Among those to leave in the aftermath were the bankrupt Bed Bath & Beyond and WeWork, which combined to lease more than half the building.
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Hudson Bay entered the picture two months ago when it forged a joint venture with RXR to acquire and recapitalize the property. The partners secured a five-year, $320 million loan and each side ended up with a 50 percent stake in the property, excluding the 200,000 square feet owned by 32BJ SEIU.
Retailer Cole Haan recently renewed an 11-year lease for 62,000 square feet of offices on the third floor, while T.J. Maxx and Marshalls signed five-year renewals for 68,000 and 38,000 square feet of retail space, respectively.