After leasing its flagship store on New York City’s Fifth Avenue since 1997, the luxury retailer Prada (OTC:PRDSF) is paying $425 million to buy the property.
Reuters reported Prada will take ownership of the five-story store and its accompanying seven-story office building that will be used for office space and storage. The sale is an all-cash transaction and the building’ previous landlord, Wharton Properties, stated the property received recent investments that “further improved the residential, hospitality and retail appeal.”
“The board believes that the Property’s location offers high strategic value being characterized by increasing scarcity and long-term potential,” Prada said in a statement. “Furthermore, the area in the immediate vicinity of the property has recently seen an influx of significant investments that have further improved the residential, hospitality and retail appeal.”