In the wake of a new owner at 769 Madison Avenue, luxury clothing company Eleventy has a 10-year commitment to the property.
The company signed a lease on the Madison Avenue building, also known as 40 East 66th Street, with an asking rent of $ 900 per square foot. It’s unclear what Eleventy ended up paying for the space.
Eleventy will occupy 5,000 square feet over two floors. Oded Nachmani, Adam Henick and Brandon Charnas of Current Real Estate Advisors represented Eleventy in the case.
The company previously had a short-term lease with the building’s previous owner, Vornado Realty Trust. Metro International, a subsidiary of Reuben Brothers, purchased the 12,600 square foot commercial condo unit for $ 30 million in October.
âThey were already swimming in the water,â Nachmani said. âSo it made sense to sign a long-term lease. “
At the same time that the Reuben brothers were buying 769 Madison Avenue, the company was purchasing a mixed-use building in Lenox Hill from Vornado. The 12,200 square foot property at 677 Madison Avenue traded for $ 20 million.
Vornado sold the buildings alongside other commercial operations, which she said had “negative income” at the time.
âWe think it’s important that exciting brands like Eleventy take up space to encourage other transactions,â said Henick.
Madison Avenue continued to struggle after the pandemic emptied offices and scuttled tourism, starving New York City’s retail corridors.
Foot traffic in August fell to just 71% of 2019 levels, according to an estimate from location analysis firm Orbital Insight. The area has an availability rate of 39%, the highest in Manhattan, according to figures from Cushman & Wakefield.
Still, some other retailers have started signing new leases in the area. Luxury furniture and carpet retailer Ben Soleimani signed a lease earlier this month for the brand’s first Manhattan showroom at 601 Madison Avenue.