SL Green Realty announced signing Ulta Beauty Inc., to the retail roster at 2 Herald Square. The deal puts the largest beauty retailer in the U.S. in a 12,040-square-foot store located at the intersection of Sixth Avenue, Broadway, and 34th Street. This highly coveted corner of Herald Square is also moments away from Penn Station and has foot traffic in excess of 100 million people each year.
NYC’s largest landlord purchased the leasehold interest at the 362,191-square-foot Koreatown office and retail property in May of last year. SL Green paid $274 million to acquire Sitt Asset Management’s defaulted loan, which at the time had an outstanding balance of $250.5 million and an accrued interest of nearly $8 million. This purchase ranked among the top 50 U.S. office sales of 2018. By the end of last year, SL Green had recapitalized the property and brought occupancy above 93%.
Brett Herschenfeld, Managing Director at SL Green, stated about the latest lease signing, “This new partnership with Ulta Beauty, considered one of the most popular shopping destinations, demonstrates the strength of the Herald Square submarket and further attests to the importance of a brick and mortar presence in New York City as part of an overall retail strategy. I am proud that in only 16 months since acquiring this Property, our business plan has been executed and the retail is now 100 percent leased.”
Ulta now shares the roster with notable tenants like Victoria’s Secret, Mercy College, and WeWork. Amazon signed a deal for all the desks in the coworking space last November, thus is the sole occupant of WeWork’s leased space of 122,000 square feet across floors 8 through 11, as well as the penthouse. At the close of 2018, the company expanded its footprint within the building with a new 29,388-square-foot lease, which included a new dedicated lobby space located on 35th Street.