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A chic New York City apartment, which features the ultimate in designer-pedigree closets, has gone on the real estate market at a bargain price.

Chanel and Fendi designer Karl Lagerfeld has abandoned his plans to retire to the co-op he bought in Manhattan's Gramercy Park for $6.5 million in 2006. Today's outlet-style listing price: $5.5 million!

Lagerfeld, who mainly resides in Paris, purchased the impressive spread, which features stunning views and custom bookcases, with the intention of eventually retiring to the Big Apple, a source told New York Post real estate columnist Jennifer Gould Keil.

Herr Lagerfeld never moved into the six-floor apartment, the newspaper reports. The three-bedroom, three-and-a-half-bath apartment features expansive walk-in closets. Natch!

Lagerfeld's decision to sell the NYC digs will keep him, for now anyway, a transatlantic flight away from his muse-of-the-moment: "Gossip Girl" star and Chanel model Blake Lively.

Meanwhile, read about Lagerfeld's other stateside venture: a capsule collection for Macy's set to debut later this year.

And guess the name of the bananas reality stylist who plans to dress her baby in Chanel diapers.