By Adam Pincus
UPDATED, Dec. 5, 2019, 9:50 a.m.: Target inked a new 15-year lease for 32,942 square feet in Tishman Realty’s large retail property known as E-Walk Retail that is west of Times Square on the north side of West 42nd Street.
This is the second major lease disclosed for the 200,000-square-foot building which is undergoing a rehabilitation expected to cost $65 million. Regal Entertainment Group signed the other lease, in late 2017 for about 55,000 square feet on four levels, including 2,000 on the ground floor. The theater opened in 1999, following the completion of the Tishman-constructed building.
Target signed the lease November 22, according to a memorandum of lease recorded yesterday. The lease includes three five-year extension options.
This is Target’s 10th small-format store to open or be announced in Manhattan, a company spokesperson said in an email. The borough is “a priority growth market for the company,” the spokesperson said. The firm would not comment on the lease other than to confirm it had signed a lease on that block for about 33,000 square feet.
A rendering on the Target website places the store in the space JLL marketed that has 3,693 on the ground floor and additional space on the second floor, and was referred to as the East Anchor. The marketed space was about 7,000 square feet smaller overall compared with what Target leased.
Additional terms of the lease were not immediately available but it’s almost certain it will be one of the 10 most expensive retail leases inked this year, with Target paying several million per year. It was also not known how much space was on the ground floor of the building which has an address of 233 – 267 West 42nd Street and has 400 feet of frontage on the street.
Tishman announced in early 2017 that it would spend $65 million to renovate the approximately 200,000 square feet of retail space it owns in the building that has four stories above ground and a lower level, on a 40,600 square foot lot. The developer planned to get $800 per square foot on the ground floor, an article from the time in Crain’s said.
JLL’s Patrick Smith, Erin Grace, Matt Ogle and Corey Zolcinski, are marketing the Tishman space, and Ripco Real Estate typically represents Target in leases, but neither immediately responded for comment.
JLL marketing material shows Five Guys and Dallas BBQ will remain as tenants.
Target has been aggressively leasing space in New York City as it expands its smaller-store concept in the city.
Updated with comment from Target.