The real estate that came with Hudson's Bay's $2.9 billion purchase last year of the Saks department store chain was "a little added gift with purchase," CEO Richard Baker told CNBC on Tuesday.
That's some gift. On Monday, the company announced its Saks flagship on Manhattan's Fifth Avenue has been valued at $3.7 billion, making it the most valuable retail building in the world.
Baker said the appraisal was an example of an operating company with hidden real estate assets with tremendous value, comparing it to Hilton's nearly $2 billion sale of the Waldorf Astoria last month to Chinese insurance giant Anbang Group.
"This comes out most often in markets like this where the real estate market is really driving up and all of a sudden these jewels come out of these operating companies," Baker said in an interview on "Squawk on the Street."
He said the appraisal is no surprise given the valuations of a number of asset classes on Fifth Avenue and the strength of New York City's real estate market.