Madison Avenue's booming

[krulltime]

Golden Mile glitters again
Madison Avenue's booming



BY LORE CROGHAN
July 19, 2004

Fashion icon Oscar de la Renta has never had a store to call his own. He's always relied on swanky department stores to sell his creations.

But now he's going to build himself a flagship, and there's only one place with just the right flair - Madison Avenue.

The retail world is talking plenty about the resurgence of the Golden Mile, that stretch of Madison from 57th to 72nd streets.

For openers, de la Renta is negotiating to buy Sergio Rossi's lease for the storefront on the corner of 66th Street, sources told the Daily News. The rent is a cool $1 million a year.

De la Renta's people aren't saying much about their plans for 772 Madison because the deal's not signed yet.

"We're seriously considering a store on Madison Avenue, and hope to have an announcement soon," son-in-law Alexander Bolen explained.

Up and down the avenue, after a somewhat sluggish 2003, the city's priciest shopping district is seeing a rush of leasing and store construction this year - thanks to the enthusiasm of newcomers like de la Renta and the expansion of long-time area tenants. "This street, more than any, has rebounded with the revival of the luxury goods market," said broker Faith Hope Consolo of Garrick-Aug Associates Store Leasing. "After a great Christmas, anybody who was sitting on the fence about Madison jumped back in."

One of the savviest European players, Louis Vuitton, is negotiating a lease for a 5,000-square-foot location at 845 Madison - though it has a big store on nearby Fifth Avenue.

And three European jewelers are using Madison Avenue as their point of entry into New York.

"We need a boutique to make a statement," said Yann Gamard, chief executive of Swatch Group US, who's rented 781 Madison for Blancpain, a Swiss watchmaker that's been in business since 1735.

Damiani just started selling bling-bling at 796 Madison. And de Grisogono, which is known for its use of black diamonds, is building a shop at 824 Madison.

The pace of construction is being tempered with a new-found sense of prudence. An Italian menswear retailer who's working with broker Robin Abrams of Lansco spent six months drawing up a business plan for a store site on Madison - something her European clients didn't do in the past.

"You have a lot of tenants looking for space - but they're not saying, 'I must have a location on Madison Avenue at any cost,' " she explained.

They want to make money in the company of competing luxury brands that include Chanel, Versace, Prada and dozens of others. They're encouraged by the presence of a built-in customer base - the residents of the neighborhood's posh townhouses and apartment buildings, who are some of the city's wealthiest.

"Madison Avenue is the main street of the upper East Side," said Matthew Bauer of the Madison Avenue Business Improvement District. "People will take the dog out for a walk and see something in a store window to buy."

New York retailers are part of the Golden Mile's resurgence, too. Antiques dealer Karl Kemp is expanding from Greenwich Village. He's going to stop exhibiting at antiques fairs and build a shop at 833 Madison instead. "It will be a year-long showcase," he said.


Priciest addresses

*The luxury-brand haven called the Golden Mile runs from 57th to 72nd streets.

*Golden Mile store rents are among the priciest in the city: $600 per square foot for big spaces of 5,000 square feet and more; $700 per square foot for medium-sized spaces of around 2,500 square feet; $800 per square foot and more for small boutiques of 1,500 square feet or less.

*Many merchants pay yearly rents of $1 million or more.

*The multi-story townhouses that are a hallmark of the Golden Mile can cost retailers $2 million to outfit as stores. That's why some merchants prefer to rent small single-floor spaces.


All contents © 2004 Daily News, L.P.

[billyblancoNYC]

57th-72th may be the "golden mile" but the pricey shops really start before and end after those parameters. Not that Coach is like Gucci, but I think there's a Coach all the way up in the mid-80's. Even the 40's are starting to get swanky, too.

It is a great block just to walk on and see the nice shops, buildings, etc. It is much nicer than 5th ave in my opinion. Also, a lot less crowded.