When Vera Wang was billed more than $272,000 in back taxes on its Mercer Street boutique back in June, the brand wasn't sure if it could remain at the address. But after filing a lawsuit against the landlord, The Real Deal is reporting that the two seem to be "on the verge of resolving their dispute."
According to the agreement filed last week, real estate company Premier Equities said it would not terminate Vera Wang's lease, and in turn Wang would withdraw the temporary restraining order filed against the landlord. Wang, which has been at 158 Mercer Street since 2007 (before the likes of Versace and Balenciaga came along), originally stated that it had, in fact, paid taxes on its rent over the past five years, and that "the lease does not permit defendant to retroactively bill for all the prior tax years."
The likely reasoning behind the landlord's motivation was to replace Vera Wang with a tenant who would pay market rent — about $977 per square foot — since Wang pays just $220 per square foot (which comes out to about $46,000 per month). The brand's current lease expires here at the end of 2016, but it has the option to renew for another five years under current terms.