According to WWD, Nordstrom Inc. has signed a nonbinding letter of intent on the former
Drake Hotel (Park Avenue and 56th Street), bringing the Seattle-based retailer a step closer to
securing a Manhattan location (yeah!). The hotel is being redeveloped by its owner, Macklowe Partners.
is not a binding agreement," cautioned one source. "They are still a
long way from any deal being finalized. Nordstrom is looking at a bunch
of different options with various developers."
One retail source
indicated the letter underscores that Nordstrom is seriously interested
in the location and that negotiations with Macklowe have been positive.
"The letter of intent gives a developer a basis for getting financing,
and for a bank, it takes away some of the risk," the source said. It
also opens the door to further due diligence on the site.
Park Avenue location holds plenty of potential. Given its size, the
site could provide Nordstrom with the desired 200,000 square feet to
make a big and powerful statement. It also has three entrances — on Park Avenue, 56th Street and 57th Street.