Toys R Us to close iconic FAO Schwarz store in July

Last Updated May 15, 2015 6:43 PM EDT

NEW YORK - Toys R Us is closing its only remaining FAO Schwarz store, citing the high and rising costs of running the retail space on New York City's pricey Fifth Avenue.

The company said Friday it will close the 45,000-square-foot store July 15 and it is looking for another location in midtown Manhattan. FAO Schwarz says it is the oldest toy store in the U.S., as it has had a location in New York City since 1870. It moved to its current Fifth Avenue location in 1986.

In a statement provided to CBS MoneyWatch, spokesperson Linda Connors said, "For the past several years, Toys R Us has been reviewing its lease renewal options for the FAO Schwarz Fifth Avenue location, and one of these options was to not renew the lease agreement, which the company has decided to do."

The location features a candy store, numerous specialty toy departments spread across three levels, and personal shoppers. It has been featured in several movies, including "Big," where Tom Hanks danced on its large floor piano.

Connors also said the company "is working diligently to place as many full- and part-time team members as possible at Toys R Us and Babies R Us locations in the greater New York/New Jersey area."

Toys R Us, of Wayne, New Jersey, has been privately held since 2005. It bought the FAO Schwarz brand in 2009.