Extell founder and Chairman Gary Barnett and a Chanel bag.

Luxury fashion brand Chanel may join the likes of Kering and Prada in owning their own piece of New York City real estate.

Chanel is negotiating to buy the retail space at Gary Barnett’s proposed tower at 655 Madison Avenue, providing him with an anchor tenant that could help get the tower financed, Commercial Observer has learned.

Multiple sources told CO that Chanel may pay in the mid-$400 million range for around 65,000 square feet of retail space in the base of the future luxury condominium project that Extell plans to build on the northeast corner of East 60th Street and Madison Avenue.

At $450 million, the transaction would equal a blended $7,000 per square foot. The deal would involve space on both higher floors and below street level. Until signed and sealed, the deal isn’t done, sources said.