Arts and crafts retailer Michaels has renewed its lease at 675 Ave. of the Americas. Michaels signed the renewal for 32,000 square feet on the mixed-use property’s ground floor with owner GFP Real Estate.
The lease’s terms and rents were not disclosed. Jeffrey Gural, chairman & principal at GFP Real Estate, represented both the tenant and landlord in the direct lease transaction.
The six-floor property was originally built in 1901 to house the Adams Dry Goods department store. Nowadays, the 311,000-square-foot Class A property is home to office and retail tenants. The building features 50,000-square-foot open floorplates, 13-foot exposed ceilings and 10-foot oversized windows. 675 Ave. of the Americas also offers a 24/7 attended lobby, tenant rooftop amenity space, high-speed elevators, mechanical systems and a new HVAC system.
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Michaels became a tenant at 675 Ave. of the Americas in 2014, making for its only location in Manhattan. The property is situated in a prime retail area, five blocks north of Union Square Park and one avenue away from Madison Square Park. The building is also near several subway stations that offer access to the A, C, E lines, the 1 and 2 lines, and the F and M lines.
Situated in a shopping destination
Gural said in prepared remarks that this Michaels location has been successful over the years because the area is a major shopping destination that sees a consistently high level of foot traffic. The mixed-use nature of 675 Ave. of the Americas has attracted a variety of tenants including Nielsen, Harmon Stores, Trader Joe’s, along with Guidepoint and Weight Watchers, who both have their headquarters there.
GFP Real Estate acquired 675 Ave. of the Americas in May 2019 for $89 million from Chelsea Green Associates. The firm is expecting the mixed-use property to be a long-term hold in its expanding portfolio of Manhattan office properties.