Prada has significantly expanded its footprint in New York, acquiring two buildings on Fifth Avenue. In a transaction totaling US $ 835 million, an entity linked to the Prada family purchased 720 Fifth Ave. for around US $ 410 million, followed by the announcement of the US $ 425 million purchase of 724 Fifth Ave., housing their flagship store.
This acquisition ranks among the largest real estate deals in New York this year. Neither Prada’s spokesperson nor the seller’s representative, an entity owned by developer Jeff Sutton, commented immediately on the matter.
While property acquisitions faced challenges due to declining values and rising borrowing costs this year, Prada’s move aligns with a resilient US retail sector despite a global luxury goods demand slowdown. Prada emphasised the strategic significance of its flagship building on Fifth Avenue amidst increased investments in residential, hospitality, and retail ventures in the neighborhood. The company plans to utilise the space for its store, offices, and storage, as confirmed in its recent filing.