Liz Claiborne leasing space on Fifth Avenue.

In one of the largest retail leasing transactions of 1994, Liz Claiborne has completed negotiations for a long-term lease of a New York flagship store at 650 Fifth Avenue, a 36-story office tower at the southeast corner of 52nd Street.

The move is seen as a vote of confidence in the avenue's retailing future and a major commitment by one of the world's foremost apparel designers and manufacturers, according to Caleb D. Koeppel, vice chairman and CEO of Koeppel Tener Real Estate Services (KTR), who arranged the transaction along with Herb Yellin, managing director of Colliers ABR, Inc., exclusive leasing and managing agent for 650 Fifth Avenue.

The new Liz Claiborne store lease, valued between $25 million and $30 million, is the result of a two-year search for space and extensive negotiations for the 650 Fifth Avenue site, which required a change in zoning by the city to comply with public access requirements of Liz Claiborne, according to John Brod and Mort Schrader, the KTR brokers who negotiated on behalf of Liz Claiborne. As part of the zoning modification, a new "vest pocket park" will be created for public use.

The multi-billion dollar manufacturer and retailer of women's apparel and accessories will occupy the entire 19,000 square feet of the corner triplex retail space, which features approximately 70 feet of windowed frontage on Fifth Avenue.

"We were not interested in a series of storefronts, a chain store or a franchise operation, but a signature store that could take advantage of Fifth Avenue's billboard appeal," said Yellin of the owner's commitment to find a retailer to fit the building's "footprint." Liz Claiborne fit all the owner's criteria: quality of signature, quality of product and the ability to produce significant sales.

Set to open in mid-1995, the new store is expected to sell a full range of the designer's apparel, accessories and other merchandise in Liz Claiborne's designer line.

"This is a prime example of the growing trend of what are essentially manufacturers leasing prime Fifth and Madison Avenue space," said Yellin, citing other stores such as Warner Brothers, Coach, Calvin Klein and Nike as other recent examples. Coupled with nearby Cartiers, the Liz Claiborne store will provide a visual gateway to Rockefeller Center, Yellin added.