Sept. 4 (Bloomberg) -- Hudson Yards, the $20 billion Related Cos. development on Manhattan’s west side, will be home to New York City’s first Neiman Marcus luxury department store.
The 250,000-square-foot (23,000-square-meter) location will occupy three floors of a building in a retail complex called Shops at Hudson Yards, according to a statement yesterday from Related, co-developer Oxford Properties Group and Dallas-based Neiman Marcus Group Ltd. It is scheduled to open in 2018.
Hudson Yards, expected to be buoyed by the extension of the subway to 11th Avenue, is driving investment in a largely industrial enclave of Manhattan. The addition of Neiman Marcus brings a “seal of approval” by adding a high-profile luxury brand, said Kenneth Himmel, president of Related Urban, the New York-based firm’s mixed-used division.
“Certainly everyone that’s in the retail development business in this country understands what it means to deliver a Neiman Marcus as an anchor,” he said in a telephone interview. “And to do it in Manhattan magnifies the impact tenfold.”
Hudson Yards, which Related calls the biggest private real estate development in U.S. history, is being built in two phases. The eastern portion, now under construction, includes two high-rise towers. The first, 10 Hudson Yards, will be home to Coach Inc., the luxury-handbag maker, as well as SAP SE, L’Oreal USA and Fairway Market. The second, 30 Hudson Yards, will be the headquarters of media company Time Warner Inc.
Neiman Marcus will be part of a section between the towers along 10th Avenue. Himmel said he envisioned the department store at the center of a vast retail complex fed by the luxury developments along the High Line elevated park from the south and the new 7 line subway terminal from the north, plus some 50,000 workers filling the skyscrapers.
“Hudson Yards presents the ideal location for a Neiman Marcus store,” Karen Katz, president and chief executive officer of Neiman Marcus Group, said in a statement. “The project is a bold and innovative retail idea and one that complements how we view our Neiman Marcus brand.”
Neiman Marcus currently has a store outside New York at Garden State Plaza mall in Paramus, New Jersey, and will open a location at Long Island’s Roosevelt Field in 2016. The company, which was acquired by Ares Management LLC and the Canada Pension Plan Investment Board for about $6 billion last year, also owns the Bergdorf Goodman department store in Manhattan.
Nordstrom Inc., the Seattle-based department-store chain, also plans to open its first Manhattan location in 2018. The company will own and occupy the seven-story, 285,000-square-foot base of a tower to be built on West 57th Street near Carnegie Hall.
Himmel said Nordstrom and Neiman Marcus were the only two sizable upscale department store brands without New York stores, and their addition is “great for Manhattan.”
“Neimans now gets to appeal to a terrific demographic, the younger, the professional, audience, and the visitor who’s come into the market who’s already been a great customer of theirs for years and years” at Bergdorf Goodman, he said.
Neiman Marcus will get to have three 80,000 square-foot floors -- each bigger than a football field -- at the top of the Hudson Yards retail complex, Himmel said.
“It’s the difference between a luxurious experience, with the kind of breathing room and circulation, and a chance to animate the store properly, and you can’t do that on a small plate,” he said.