Introduction to Ulta Beauty’s Expansion in Manhattan
Ulta Beauty, the cosmetics and skincare retailer, is set to make a significant impact on the Manhattan retail landscape with the announcement of its third store located at 620 Avenue of the Americas. This move highlights Ulta’s commitment to growth in urban markets and its appeal to a diverse clientele. The store will encompass 11,503 square feet, situated on the ground floor of a seven-story building that is owned by RXR and Hudson Bay Capital.
Details of the Lease Agreement
Ulta’s new location comes with a 10-year lease agreement, which signifies a long-term investment in the area. The asking rent for the space was set at $175 per square foot, which reflects the rising demand for prime retail spaces in Manhattan. This lease is part of a broader strategy by Ulta to establish a stronger foothold in one of the world’s most competitive retail markets.
Previous Ulta Locations in Manhattan
The opening of this Ulta Beauty location will be the brand’s third in Manhattan, following successful stores at 51 West 34th Street and 188 East 86th Street. These locations have helped solidify Ulta’s presence in the city, catering to the beauty needs of locals and tourists alike. The continuous expansion underscores the retailer’s growth strategy focused on urban environments.
The Role of RXR and Hudson Bay Capital
The acquisition of 620 Avenue of the Americas aligns with RXR and Hudson Bay Capital’s initiative to revitalize the Chelsea Corridor. According to William Elder, RXR’s executive vice president, the collaboration between the two companies aims to reposition the building as a prime retail destination. With the new Ulta store, the building is now fully occupied, which reflects positively on their development strategy.
Other Retailers Joining the Building
The addition of Ulta Beauty also complements the presence of other retailers in the same building, including Burlington, which recently signed a 12-year lease. The total retail space in the building is impressively large, totaling 77,970 square feet. Previous additions to the tenant lineup include TJ Maxx and Marshalls, meaning that 620 Avenue of the Americas is quickly becoming a hub for discount and beauty shopping in the area.
Financial Context and Future Prospects
Following a period of reduced occupancy due to the pandemic and significant retail shifts, the fully-leased status of the building marks a promising turnaround. In light of Bed Bath & Beyond’s earlier vacancy, this revitalization signifies a trend of recovery in urban retail spaces. RXR and Hudson Bay have made substantial investments, including a $320 million loan to recapitalize and enhance the property, emphasizing their commitment to long-term growth in the area.
Conclusion
The planned opening of Ulta Beauty at 620 Avenue of the Americas is more than just a lease agreement; it represents a revitalization of New York City’s retail scene and solidifies the building’s status as a strategic retail destination. As brands like Ulta enter the market, they not only cater to local and visiting customers but also contribute to the economic rebound of key commercial sectors within the city. The ongoing developments in this area are set to create a vibrant shopping experience and a hub for beauty and wellness.
FAQs
What is the address of the new Ulta Beauty store?
The new Ulta Beauty store is located at 620 Avenue of the Americas in Manhattan.
How large is the Ulta Beauty retail space?
The retail space for the Ulta store measures 11,503 square feet.
Who are the co-landlords of the building?
The co-landlords of 620 Avenue of the Americas are RXR and Hudson Bay Capital.
Has the building reached full occupancy now?
Yes, with the addition of Ulta Beauty, the building is now at 100% occupancy.
Who brokered the lease transaction?
The transaction was brokered by Katz & Associates, with RXR acting as the in-house agent.
What other retailers are located in the same building?
Other retailers in the building include Burlington, TJ Maxx, and Marshalls.
