MANHATTAN — Even Armani could get priced out of New York City.
The famed Italian fashion house filed suit against landlord SL Green for boosting the rent on its flagship Madison Avenue store from $3.5 million to $9 million per year, according to court papers filed Monday.
The suit, which was first reported by The Real Deal, accused SL Green of “perpetrating an illegal and collusive scheme to squeeze Armani out of the sublease,” which Armani first signed in 1995.
In 2011, the brand extended its sublease at 752-760 Madison Ave. through 2025 with the main leaseholder, Madison 65th Company, and spent "millions of dollars on a major renovation" at the store, according to court papers.
SL Green, which describes itself as the city’s “largest office landlord” on its website, acquired the lease in 2012 through an affiliated company, the suit read.
Then, in 2014, the landlord bought the property under the building, according to court papers.
After an appraisal of the land valued the property at $190 million, SL Green more than doubled the fashion house's rent to $9 million.
“This is a desperate attempt by Armani to protect its far below market rent at one of the most valuable retail locations in New York City, ” SL Green said.
