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Category ArchiveCoStar Group

Logistics Startup Flexport Moves From Flatiron District to Chelsea

Freight logistics software startup Flexport has outgrown its New York City office and has leased a larger space across town.

The air and ocean freight forwarder has inked a deal for 23,000 square feet on the entire second floor at Kaufman Organization’s 111 West 19th Street between Avenue of the Americas and Seventh Avenue, Crain’s New York Business reported. Asking rent in the deal was $65 a square foot, according to information from CoStar Group. The length of the lease wasn’t immediately available.

It wasn’t clear what brokers were involved in the transaction, but Kaufman Organization’s Sam Stein and Yvonne Chang marketed the space. Stein declined to comment on the deal. Flexport didn’t return a request for comment.

Flexport had outstripped its current home, an 11,000-square-foot office at 250 Park Avenue South between West 19th and West 20th Streets, after growing from three employees to 70 over the past two years, per Crain’s. The five-year-old, San Francisco-based firm plans to grow to 175 employees, and its new home can fit up to 200. The move to New York has also made it easier for Flexport to reach local shipping and trucking companies that do business at the Port Newark-Elizabeth Marine Terminal.

The 600-person company also has offices in Amsterdam, Atlanta, Los Angeles, Chicago, Hamburg, Hong Kong and Shenzhen. It offers shipping and customs services as well as real-time shipping data for air freight, ocean freight, and trucking.

Other tenants in the Chelsea property include meal delivery service Plated, legal news provider Law360 and wedding dress retailer Kleinfeld Bridal.

Source: commercial

Broad Street Development and Invesco Recap 80 Broad Street, Valued at $235M

Broad Street Development and new equity partner Invesco have completed a $235 million recapitalization on 80 Broad Street, between Stone and Marketfield Streets, according to an announcement from BSD. The rebuilt capital stack consists of an assumed $102 million first mortgage from AIG, an additional $30 million in mezzanine debt from the insurer and a fresh equity contribution from Invesco, representing a controlling stake in the building.

BSD purchased the 423,000-square-foot office tower in 2014 for $173 million with the help of the AIG mortgage, along with preferred equity from RXR Realty and Colony Capital. The addition of new financing from AIG and Invesco effectively removes that previous pair of preferred equity partners from the deal, the BSD statement says.

Four years remain on AIG’s original seven-year mortgage, set for payoff in 2021.

“We are reinvesting in Downtown Manhattan in a major way,” Raymond Chalme, the CEO of BSD, said in a statement. “We believe in this asset and the market, and we know that working with…Invesco, we can make further improvements to 80 Broad Street so it can achieve even greater success.”

Chalme’s firm is actively exploring other opportunities to work with the Atlanta-based investment management company in New York City, he added.

The 36-story building in Lower Manhattan is host to a handful of multifloor tenants, including law firm McGivney & Kluger and the interior-decorations outfitter The Robert Allen Group, but the majority of companies who lease space in the building occupy less than 5,000 square feet each. That focus on smaller lessors is by design, David Israni, a BSD senior managing director, told Commercial Observer.

“We were big into having some smaller users here,” Israni said. “The floor plates lay out quite well for smaller [tenants].”

Competing buildings in the Financial District have cleared out entire floors to try to attract major, 20,000-square-foot tenants in recent years, Israni noted. That trend has slashed the supply available for small office tenants that want access to the neighborhood’s dense network of subways and transit options—especially technology and media companies that might be new to the area.

During the three years BSD has operated the building, it has been able to increase rents on some floors. “It’s just a flight to quality Downtown,” Israni said.

Proceeds from the new capitalization will go towards a refresh of the lobby and the building’s elevators. Tenants already have access to a bike room and a conference space, and more amenities are on the way, according to Israni.

AIG and Invesco did not immediately respond to a request for comment.

Source: commercial

Queens District Attorney Nears Deal for 101K-SF Office Space in Kew Gardens

The Queens County District Attorney’s office is close to renewing and expanding its Kew Gardens office space to more than 100,000 square feet, Commercial Observer has learned.

The D.A. currently occupies 86,002 square feet in Crossroads Tower, a 12-story office building at 80-02 Kew Gardens Road, near Queens’ county criminal court and borough hall. It plans to renew its current lease and expand to 101,329 square feet, according to the Department of Citywide Administrative Services, which handles real estate deals for city agencies.  

The new, 14-year lease for the county prosecutor’s office will include a portion of the concourse level, the entire first floor, parts of the second, fourth, fifth and seventh floors and the entire eighth floor. Asking rent was $37 a square foot for most of the space, except for part of the ground floor, which was asking $55 a square foot, according to information from CoStar Group.

The annual rent will start at $3.57 million ($35 a square foot) for the first year and rise slightly each year until 2031, when the final rent will be $4.95 million ($49 a square foot), public records show.

The office, headed by Queens District Attorney Richard A. Brown, has occupied the tower since 1991, according to a DCAS spokesman. The 515,000-square-foot building was constructed in 1989 at the corner of Grand Central Parkway, Queens Boulevard, Union Turnpike and Kew Gardens Road.

CBRE’s Roy Chipkin handled the deal for the owner, Cammeby’s International, and John Morrill, also of CBRE, represented DCAS. They declined to comment through a spokeswoman.

Crossroads Tower fell into bankruptcy in the early ’90s, but its fortunes turned around by 1996, when the Federal Bureau of Investigation, the New York State Department of Finance and Taxation and a handful of other government tenants moved in, the New York Times reported at the time. The FBI currently occupies 84,000 square feet on the property’s top two floors, and the state finance department still has 38,000 square feet on the 9th floor.

Source: commercial

Levi’s Zips Up New Times Square Space

Levi’s is moving its Times Square store a block and a half north up Broadway, according to an investor presentation from Vornado Realty Trust.

The denim company will occupy 17,250 square feet on the lower level and ground floor of the Vornado’s Marriott Marquis at 1535 Broadway, between West 45th and West 46th Streets, according to information from CoStar Group. The store is expected to open at the end of 2018, The New York Post reported. The length of the lease and asking rent weren’t disclosed.

Levi’s currently occupies 600 square feet on the first floor of the Paramount Building at 1501 Broadway, between West 43rd and West 44th Streets, according CoStar.

Laura Pomerantz of Cushman & Wakefield repped Levi’s in the transaction, and a spokesman for the brokerage didn’t return a request for comment. A Vornado spokesman declined to say who was involved in the lease, but the in-house leasing team for the building consists of Edward Hogan, Jason Morrison and Michael Worthman.

Laline and T-Mobile already occupy retail space in the building and Sephora has also leased space there.

Source: commercial

Squarespace Grows to 143,000 SF at 225 Varick Street

Hosting platform and website builder Squarespace has leased two more floors at 225 Varick Street in Hudson Square.

Squarespace inked a 12-year deal for 49,700 square feet on the fifth and sixth floors of the building, where it already leased 93,000 square feet on the 10th through 12th floors in 2014. Asking rent on the new lease was in the high $70s per square foot, according to The Real Deal, which was the first to write about the transaction.

The tech firm is expected to move into its new space in April 2018, according to CoStar Group.

Shake Shack also signed on for 27,000 square feet of office and retail space in the property between Clarkson and West Houston Streets last month. The upscale burger spot will open a flagship restaurant in the ground-floor retail space and a test kitchen on the lower level in mid-2018. It will also move its offices, which are currently located in Union Square, into part of the third floor in the spring of 2018.

Rocco Laginestra and Paul Myers of CBRE represented Squarespace in the deal, and CBRE’s Howard Fiddle, Paul Amrich and Neil King represented landlords Trinity Real Estate, Norges Bank Real Estate Management and Hines. A spokeswoman for CBRE declined to comment.

Source: commercial

Children’s Clothing Company Moves to Midtown From Garment District

Source: commercial

Savanna Buys NoMad Building for $126M, Fifth Time Property Changes Hands Since 2006

Source: commercial