Home Depot will take over the 120,000 s/f Upper East Side retail space being vacated by beleaguered Bed Bath & Beyond.
Gazit-Globe, the Israeli-based owner of 410 East 61st Street, said the home improvement giant will take over the space when Bed Bath’s lease expires in 2021.
Chaim Katzman, CEO, said, “This transaction is tangible evidence of the importance of owning unique properties in excellent locations. We appreciate the diligence of everyone involved and look forward to welcoming The Home Depot to Gazit and to First Avenue.”
Battered by the COVID pandemic, Bed Bath & Beyond announced earlier this year that it would be forced to close 200 stores nationwide over the next two years – six of them in NYC.
Gazit-Globe said it immediately saw interest in the East 61st Street space from other tenants.
“The property garnered strong interest from a number of tenants at sizable rent increases from the current tenant, even as New York was shutting down. We are exceptionally fortunate to welcome an international retailer with an A credit rating,” said Jeff Mooallem, president & CEO of Gazit Horizons, the US arm of the firm.
“The reports of retail’s death in New York City have been greatly exaggerated. The execution of this lease, at the peak of the Covid-19 pandemic, is an important sign of confidence in New York City and a major accomplishment for all parties involved.”
Both the landlord and tenant were represented by Peter Ripka of Ripco Real Estate. Ripka said, “As is so often the case in large retail transactions, the stars aligned to get this done. The space is ideal for Home Depot, with large footprints, high ceilings and excellent loading.”
The Home Depot will lease more than 120,000 s/f over four floors. The lease is for a 20-year base term and the build-out of the new store will start after BB&B moves out later in 2021.
The Home Depot is projected to move from its current location at 731 Lexington Avenue and open for business at the new store in the next few years.