NEW YORK—Nordstrom Inc. has finalized an agreement with Extell Development Company to build Nordstrom’s first full-line store in New York City at 225 West 57th Street, between Broadway and Seventh Avenue. The 285,000 sq.-ft. store is expected to open in 2018.

“It makes perfect sense that Nordstrom—one of the premier names in retailing—would want a flagship store in New York, the world’s premier city for retailing,” said Mayor Michael R. Bloomberg. “This is very exciting news for New Yorkers and the millions of tourists who come to our city to shop each year, and this new addition to the West Side of Manhattan is another sign of the private sector’s confidence in New York City.”

Nordstrom’s agreement with Extell marks the retailer’s first full-line store in New York City.

The planned seven-story building will include mixed-use space, retail, a hotel and a high-rise residential tower still in the planning stages by Extell.

The 40,000-sq.-ft block-through site, which fronts on the northern side of 57th Street between Broadway and Seventh Avenue and extends to 58th Street, once housed the original Hard Rock Cafe. According to Extell President Gary Barnett, excavation work on the site could begin as early as the first quarter of 2013.

Derek Trulson, international director with Jones Lang LaSalle, represented Nordstrom in the transaction. Extell was advised by Robert Futterman of RKF.

Founded in 1901 as a shoe store in Seattle, Nordstrom operates 231 stores in 31 states, including 117 full-line stores, 110 Nordstrom Racks, two Jeffrey boutiques, one treasure & bond store and one clearance store.