As Saks Global prepares to exit Chapter 11 bankruptcy, the luxury retail giant’s New York headquarters space is on the market.
About 232,800 square feet across floors 24 through 27 and 31 at 225 Liberty St. at Brookfield Place is listed as available, according to a brochure from Brookfield and brokerage JLL. Floor 26 is shown to be available starting June 1, 2028. Individual floors range from about 41,000 square feet to 54,000 square feet.
The 44-story tower offers sweeping views of Lower Manhattan and New York Harbor, along with direct access to luxury retail, dining and public areas. The building also includes a Convene meeting and event space, according to the brochure.
Saks Global signed a 16-year lease at the 2.6 million-square-foot property in September 2014 and occupied the office in December 2016, according to CoStar data. The lease is not set to expire until December 2032.
Saks Global’s plan for its post-bankruptcy office footprint is unclear and could change. The company didn’t respond to CoStar News requests for comment.
Brookfield and JLL declined to comment.
The listing comes soon after Saks Global, parent of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, landed $500 million in exit financing from its creditors. It expects to emerge from bankruptcy this summer.
Although Saks Global has rejected some leases and reduced its store footprint during Chapter 11, a May court filing showed it is assuming its lease at 225 Liberty, meaning the company plans to retain the space. However, with the case still pending, Saks Global could still seek to assign or modify the lease as part of a broader agreement with Brookfield.
Bankruptcy filings list the 31st floor of 225 Liberty as the company’s service address.
The listing comes months after the high-profile property across from the World Trade Center complex closed an $800 million commercial mortgage-backed securities refinancing, signaling increased investor confidence for top-tier office properties in New York.
A February presale report from credit-rating firm KBRA said that Saks Global was delinquent on rent. The CMBS deal’s underwriting treated Saks Global’s space as vacant in its net operating income and net cash flow calculations. Saks Global filed for bankruptcy in January.
Brookfield, which acquired the property in 1996, has since 2013 spent about $580.7 million to overhaul and “modernize” the property, built in 1987 as Two World Financial Center, KBRA said in the report.
Major office tenants include People, clothing retailer J. Crew and investment firm Invesco, each occupying about 260,000 square feet to 373,200 square feet, according to CoStar data. Brookfield also maintains about 93,000 square feet in the building.
CoStar News reporter Linda Moss contributed.