NEW YORK—Fairway Market has signed a 42,000-sq.-ft., long-term lease at Kips Bay Plaza, located at 542-580 Second Avenue. The new Kips Bay Fairway, scheduled to open in November of 2012, will be the specialty grocer’s first location in Midtown South and its fourth in Manhattan.

RKF Chairman and CEO Robert K. Futterman and Executive Vice President Gary Alterman represented Fairway Market in the deal, while Cushman & Wakefield Executive Director David Green represented the landlord, DFD Development L.P.

Fairway Market will occupy 2,000 sq. ft. on the ground floor and 40,000 sq. ft. in the basement. Other tenants at the plaza include AMC Loews Multiplex, Petco, Rite Aid and more.

Founded in the 1930s, Fairway Market opened its first flagship store on Broadway and West 74th Street in Manhattan and now operates nine stores in the tri-state area, as well as two Fairway Wines & Spirits super stores. Last summer Fairway Market opened its first Upper East Side location in Manhattan at 240 East 86th St., between Second and Third Avenues. It also operates another Manhattan location in West Harlem, as well as outer-borough stores in Douglaston, Queens and Red Hook, Brooklyn.