Nordstrom is getting more serious about establishing a store in Manhattan as part of the chain's program to elevate its fashion profile and sustain expansion.
The $7.7 billion chain is being bombarded by brokers and developers pushing properties and has checked out some high-profile locations, although nothing has been signed. Nordstrom is looking for a location of 180,000 to 250,000 square feet.
"Almost every week, someone has a different site or plan for us," said Pete Nordstrom, president of merchandising for the Seattle-based chain. "There are a good half-dozen that are worth exploring. We are looking at sites. Our focus is really trying to get something in Manhattan."
The executive wouldn't elaborate on all the sites the retailer is viewing but did say the Penn Station area, downtown around the Battery Park area, and Trump Tower are among those being examined. "We looked at Lord & Taylor, too," Nordstrom said. "We haven't ruled anything out."
Nordstrom said the company is "creative and open-minded to locations.
"We don't have to be between Saks Fifth Avenue and Bergdorf Goodman," Nordstrom said. "There are other places where we could probably be successful."
Donald Trump said he's got 125,000 square feet available for Nordstrom, or some other potential tenant, with Asprey and Avon recently closing their locations at Trump Tower. Trump noted that Nordstrom could have frontage extending along 75 percent of the block between 57th and 56th Streets on Fifth Avenue, providing excellent exposure in the high-traffic neighborhood. Tiffany & Co. occupies the other 25 percent on the 57th Street side of Fifth Avenue. Trump also said he could extend the retail space up a few levels to six, adding more space, but prefers not to.
"They love the space, but we are talking to so many different people," other than Nordstrom, Trump said.
Nordstrom also agreed that lower Manhattan poses some challenges, particularly since it doesn't have as much weekend shopping traffic as SoHo or Midtown. Department stores require strong weekend traffic to survive.
Real estate executives indicated that Vornado has develop*ment rights across from Penn Station and could assemble a number of properties to accommodate Nordstrom. "Thirty-fourth Street would be a great location because of the traffic," said Laura Pomerantz, principal of PBS Realty Advisors.
Vornado also has property on the southeast corner of Broadway and Broome Street, being redeveloped for residential and some retail use that, according to Pomerantz, has about 75,000 above ground and 35,000 below.
The Meatpacking District is another possibility. There is space available on 14th Street and Ninth Avenue, but only about 62,000 square feet over three floors, Pomerantz said.
In addition, a variance is required to open a large site and build upward in some areas, such as SoHo. The chain did examine the Shops at Columbus Center, where ultimately the economics and fit with the developer weren't right.
The Lord & Taylor site also could be a long shot. Nordstrom did express concerns about the location, which is on Fifth Avenue between 38th and 39th Streets. It's about 10 blocks south of Fifth Avenue's fashion retail enclave and not a primary destination for an upscale fashion crowd. The owners of the Lord & Taylor flagship property are considering downsizing the 650,000-square-foot site for possibly a smaller L&T store or converting the entire site to residential and commercial use. Or they could decide to put Nordstrom in there. No decision about the site by L&T's new owner, NRDC Equity Partners, has been announced.
