Carlyle pays $525m in largest retail deal in NYC this year

The Carlyle Group and Crown Acquisitions have taken a controlling stake in New York City’s 666 Fifth Avenue retail property, which will feature a new 20,000-square-foot Abercrombie & Fitch clothing store.

The Carlyle Group and Crown Acquisitions have acquired a controlling interest in the retail portion of New York City’s 666 Fifth Avenue building, paying $525 million (€330.9 million) to Kushner Companies for the property. The deal represents the largest retail deal in New York City this year, according to Carlyle.

Carlyle’s investment in the property, first reported on PERE in April, was made through the firm’s $3 billion Carlyle Realty Partners V fund, which closed in 2007 and invests across all real estate sectors in the US.

The office tower, located on Fifth Avenue between 52nd and 53rd Streets, has a 90,000-square-foot retail segment. Abercrombie & Fitch leased 20,000 square feet of space in the building’s northwest corner, joining existing retailers including the NBA Store and Hickey Freeman.

Outside of the US, Washington DC-based Carlyle has been targeting European retail outlets. The firm recently scooped up a portfolio of three shopping centers in the UK, paying €361 million for the three properties last week. The purchase price for the properties, acquired from listed UK fund manager Capital & Regional, was 19 percent below valuation of the properties just three months prior. Carlyle also recently acquired the 600,000-square-foot office and retail building at 650 Madison Avenue in New York City, for $680 million from Hiro Real Estate Company.