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The clothing store Hollister is taking over the space.

The iconic DKNY mural shows several city landmarks, including the Statue of Liberty and Twin Towers. It's been up since the late 1980s.

Earlier this year, Community Board 2 approved Hollister's application to paint over the ad. While the SoHo Alliance wanted to keep the DKNY sign, it decided not to fight the move.

"We have to pick our battles and I think this was not the battle the community group wanted to pick with the landlord," said SoHo Alliance Director Sean Sweeney. "There are more pressing landmark issues that have to be fought than this one."

"It's going to be sad to see the World Trade Center not there, because it's like a reminder of the towers and a reminder of what the city used to look like," said SoHo resident Tatiana Forero.

The DKNY sign replaced a tobacco advertisement that had been up since 1906.