Ethan Allen takes 37,000 s/f in W&M's 1010 Third Ave

Real Estate Weekly, April 18, 2007

Under a long-term lease negotiated by W&M Properties, retail giant Ethan Allen will move into 1010 Third Avenue, next to Bloomingdale's flagship location, reports Fred C. Posniak, senior vice president of W&M, which manages the property.

The site, on the west side of Third Avenue between 60th and 61st Streets, will be the flagship Manhattan store for the publicly traded, Danbury, Connecticut-based Ethan Allen, which describes itself as "America's leading one-stop home furnishings resource" and has more than 300 stores around the country.

The 37,000 s/f space comprises three floors of a retail condominium block front owned by a limited partnership headed by Peter and Anthony Malkin, the chairman and president respectively of W&M Properties, and is supervised by a Wien & Malkin partnership. A residential tower sits atop the retail condominium.

Currently occupying the premises are several small office users, stores, and a bank branch, all of which have leases that expire this July.

"When ownership acquired the property in 1998, the site was still evolving," said Posniak. "National retailers had not yet recognized the importance of the Third Avenue shopping corridor, and brokers and tenants were not focused on the area."

But ownership anticipated change, Posniak explains, and set all leases to expire in 2007 in the expectation that within this time period, the area would develop into a prime shopping destination and the site would attract the attention of many major retailers.

This is exactly what occurred. "It won't surprise anyone to learn that a number of prominent retailers sought a footprint in a thriving neighborhood that houses Bloomingdale's flagship store, the Bloomberg world headquarters, and dozens of other nationally-known retailers, such as Gap, Pottery Barn, Home Depot, and Banana Republic," remarks Mr. Posniak.

"Considering its visibility, access and traffic density, this is without question one of the most desirable redevelopment opportunities in Manhattall."

Joanne Podell of Cushman & Wakefield represented Ethan Allen in the lease negotiations, and Posniak represented the landlord.