[RobertWalpole]

http://www.observer.com/2011/12/the-whit...street-nordstrom-appears-poised-for-nyc/

The White Whale of West 57th Street: Nordstrom appears poised for NYC
By Daniel Geiger 2:00pm

According to brokers familiar with Nordstrom’s search, the options are emblematic of the dilemma that has kept the retailer bouncing around Manhattan for years. The department store is ideally searching for a roughly 250,000-square-foot box, a commodity so rare in the city that the only major department stores that have it—Macy’s and Saks among a short list of others—are ones that have been established in the city for decades and hence had a chance to address their real estate needs before the market became as expensive and supply-starved as it is now.

The solution, of course, has been for Nordstrom to accept a smaller space with a layout that is atypical for a traditional department store. Many brokers say the template for this configuration is the Bloomingdale’s on Broadway in Soho, where the retailer had to greatly reduce the size of its store and tailor its clothing line and layout to appeal to the type of shoppers in that neighborhood.

A similar reshuffling of the Nordstrom concept would likely be necessary to bring the chain to Extell’s project, brokers told The Commercial Observer. The attractiveness of the rail yards stems from an assumption that the company could design a building from the ground up to meet all of its specifications.

But the rail yards are considered a new frontier in the city with little retail connecting the site to Midtown, making a deal there a gamble if the neighborhood takes longer than expected to develop into a popular destination for shoppers.