The iconic storefront that used to house FAO Schwarz in New York City is getting a new tenant after being vacant since last July: Under Armour. "The approximately 53,000-square-foot space is one of the most-recognized and high-traffic areas in all of New York, and our plan is to build the most breathtaking and exciting consumer experience ever conceived at retail," the company's CEO told investors Tuesday. The sportswear company plans to move in by late 2018, Quartz reports.
The storefront sits at the bottom of the General Motors building, and a report by a real estate services firm found that the stretch of 5th Avenue where it's located is the most expensive retail area in the country. It's not clear how much rent Under Armour will pay, but before FAO Schwarz left the space, it was paying about $20 million per year, and NBC New York reports that the toy store's parent company, Toys R Us, cited rising costs as part of its decision to shut down the store. (Read more real estate stories.)