Although some of the pieces blend in easily with her other collections, Urban Zen focuses more on the utilitarian aspect of dressing. Cases in point, the line includes a utilitarian jumpsuit, jodhpur pull-on yoga pants, a double-layered hooded cardigan and cashmere pieces suitable for layering. Urban Zen apparel retails from $295 to $2,995.

"It's very much about layering, taking them on and taking them off, and rolling them up so you can go anywhere in the world," Karan said. "It's definitely for the person who is constantly on the go and constantly traveling, or for the person who just wants to hang out and do nothing."

The boutique is selling pieces by other designers, too, such as Forme by Koeun Park, Bonnie Young children's wear, Lainey knitwear and James Perse. The jewelry is by Wanga from Namibia and Agas & Tamar from Israel. Shoes are by Simple, and are sustainable with natural materials such as organic cotton, recycled car tires and cork, and espadrilles are by Toms, which aims to combine fashion with a social conscience, with each sold pair resulting in a donated pair for a impoverished child. There are also one-of-a-kind artisan items and home pieces, including stone sculptures by Celine Cannon. "There's a hand and a soul and an art in every single thing," Karan said.

For the mind, the store offers literature devoted to wellness and yoga, and for the senses, there are essential oils by Young Living, massage oils and body lotions by Como Shambhala, which is part of Christina Ong's Club 21 empire.

Those who attended the DKNY and Donna Karan Collection runway shows last month understand how passionate Karan has become about the collection and store, as she spent much time before and after the shows to personally pull in editors and buyers for support.

"The one thing I love about the store is that we're in season," Karan said with a laugh, referencing one of her pet peeves about the fashion system. "We're probably the only store that will show fall in fall and spring in spring."