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Zara's taking over the home of the NBA Store at 666 Fifth Avenue in one of the city's biggest retail condo deals of all time. For $400 million, the Spanish chain gets 32,000 square feet at Fifth Avenue and 52nd Street, plus the privilege of being neighbors with Uniqlo, which signed on for another retail space in the same building for $300 million around this time last year. Part of what makes this Zara deal so enormous is the status of the NBA store they're replacing—Zara had to buy them out of their lease, which still had a few years left on it. Of course, with the hordes of tourists swarming around Fifth Avenue, it shouldn't take the chain too long to start making back some of that cash, one well-priced trench coat at a time.
Update: The WSJ has updated their story on the Zara flagship, and is now saying that the flagship cost the brand $324 million, not $400 million.
· Zara Owner Pays Up for Retail Space [WSJ]
· NBA Store Bouncing Away From Fifth Avenue This Winter [Racked NY]
· Uniqlo's Giant Plywood Already Dominates Fifth Avenue [Racked NY]