The Italian fashion group Prada SpA has expanded its real estate portfolio with a building in a prestigious location.
On Wednesday, the company announced that it would, through its subsidiary Prada USA Corp. acquired an office and commercial building at 724 Fifth Avenue in New York City. The property, which has housed a flagship store for the main Prada brand since 1997, offers a “high strategic value,” explained the group.
The transaction was correspondingly expensive. According to its own information, the fashion house paid $425 million (388 million euros) to the previous owner, 724 Fifth Fee Owner LLC, for the 13-story building.
The company emphasized that the sum was “in line with the market, fair and reasonable”. The purchase is an “attractive opportunity” to secure the “strategically most important” location of the Prada store in the long term. As things currently stand, the group wants to use the rest of the building itself and accommodate offices and storage space there.