LVMH Reportedly Is Next Luxury Retailer Who Wants To Buy A Piece Of Fifth Avenue
The competition among international luxury fashion brands for space on the world's most expensive retail corridor is heating up.
LVMH Moët Hennessy Louis Vuitton, the parent company of Louis Vuitton, Christian Dior and jewelry designer Tiffany & Co., is in negotiations to acquire 745 Fifth Ave., a 35-story tower on the world-famous shopping avenue, Bloomberg reported, citing unnamed sources.
The first three floors of the Fifth Avenue building are occupied by a Bergdorf Goodman men’s store, and LVMH is competing against other bidders for the property, per Bloomberg. Bergdorf’s parent company, Neiman Marcus, and 745 Fifth Ave.'s owner, Paramount Group did not immediately return Bisnow’s request for comment.
Other tenants in the building include private equity firm Eurazeo and law firm Haug Partners, according to the building’s website.
LVMH went on a shopping spree for retail properties last year, executives said on an earnings call last week. The company spent almost $2.7B on real estate across the globe last year, including two sites on Paris’ Champs-Elysées corridor and one location in central London, per Bloomberg.
“We try to secure and buy the best possible locations for our companies, AAA locations,” LVMH CEO Bernard Arnault said on the call. “If you take Fifth Avenue in New York, we have three of the best corners there are.”
The rumored acquisition follows a blockbuster purchase by Gucci parent company Kering last week, which shelled out $963M for a 115K SF retail condo at 715-717 Fifth Ave. Last month, Italian luxury fashion house Prada paid roughly $820M combined for adjacent buildings across the street. Jeff Sutton's Wharton Properties was the seller on both of those deals.
