Spanish fast-fashion company Inditex Group is planning a new flagship Zara store in New York after acquiring a 38,800 square foot store at 666 Fifth Avenue for $324m (£198.5m).
The store will be part of a 90,000 square foot retail scheme that will also include flagships for Abercrombie & Fitch’s Hollister fascia and Uniqlo.
The latter set a retail record in Manhattan last year when signed a deal to play £300m (£184m) over a 15 year lease, around $20m ($12.2m) per year. It was previously held by Gucci for its £16.5m ($10m) annual rent at Trump Tower.
Inditex said it would use the location, which is described as one of the most symbolic in the city, to open “one of the most emblematic Zara flagships worldwide”. It was previously an NBA Store, which was closed last month following a rent increase to more than $2,000 (£1,225) per square foot.
Inditex currently has seven Zara stores in Manhattan, including an existing store on Fifth Avenue.