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It turns out that Fox's, the sad discount department store chain that opened an outpost last fall on the corner of Lexington Avenue and East 86th Street, wasn't planning a long stay. Commercial Observer reports that a 20-story, $340 million luxury condominium project is coming to this address, which will include 30,000 square feet of retail space on the basement, ground, and second levels that'll rent for a whopping $10 million per year.
The deal will also include a New York Sports Club on the third and fourth floors. The gym currently has a location at 151 East 86th Street, but that address will also be demolished to make room for this project, which New York YIMBY says will now be known as 1289 Lexington Avenue.
"We're looking to have a spot for a world-class retailer on a very important corner in New York City," developer Lou Ceruzzi told the site. "I expect that the retail component of our transaction will have one or more retailers on the first floor and at least one of the retailers will merchandise out of the lower-level space also."
It'll be entering a big-box intersection of retail here. Businesses within a stone's throw of this address include Best Buy, Petco, Staples, Starbucks, H&M, Steve Madden, Sephora, Victoria's Secret, Footlocker, and Barnes & Noble.
And Fox's—as well as the Sleepy's mattress above it—knew what it was getting itself into before opening: CO indicates that both brands signed short-term leases to stay for less than two years.
"We needed to do something with the space rather than let it just sit sallow while we do our plans," Ceruzzi said. "I think it worked out well for us and them." They'll be there a while longer, since demolition won't begin until next year.