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Category ArchiveEthan Silverstein

Coworking Company Spaces Establishing NYC Flagship in 100K SF at Manhattan West

Brookfield Property Partners six-building Manhattan West megaproject is getting a major coworking tenant.

Amsterdam-based workspace provider Spaces has leased 103,000 square feet across seven floors in a building known as The Lofts at 424-434 West 33rd Street, the landlord told Commercial Observer. The coworking company will take the seventh through 13th floors in the top half of the former printing loft building between Ninth and 10th Avenues.

The asking rent in the 10-year deal was in the high $70s per square foot, according to David Cheikin, an executive vice president at Brookfield. Spaces will get its own private entrance and lobby, as well as a 2,000-square-foot rooftop and multiple terraces. The building has 15,000-square-foot floor plates, exposed steel beams, and high ceilings, plus newly revamped elevators, lobbies and mechanicals.

“Our average tenant size at Manhattan West is 200,000 square feet,” Cheikin said to CO. “We wanted to provide those tenants with the ability to grow and shrink a bit and provide them WITH the resources for conferencing and flexible work environments.”

He also explained that the loft building will connect to Manhattan West’s 250,000 square feet of retail, anchored by a 60,000-square-foot Whole Foods.

Brookfield had originally planned to knock down 424-434 West 34th Street in order to amass a larger site that would allow for a big retail and hotel project, Cheikin said. “But when we actually got into the building, we realized it was a really good turn-of the century printing loft building that added some authenticity to our site of what the neighborhood used to be.”

Spaces is planning to make The Lofts its flagship outpost in the five boroughs, where it already has 44 locations and 1.3 million square feet of offices, according to Michael Beretta, the vice president of network development in Spaces’ Americas division. This will also be its largest space in the city, where typical Spaces locations average 30,000 to 50,000 square feet apiece.

JLL’s Jim Wenk, Brannan Moss and Kirill Azovtesv represented Spaces. Cushman & Wakefield’s Bruce Mosler, Josh Kuriloff, Robert Lowe, Ethan Silverstein, Matthias Li and Whitney Anderson worked on behalf of Brookfield.

Mosler declined to comment on the deal, and a spokesman for JLL didn’t immediately respond to a request for comment.

The seven floors will be constructed with movable walls, prebuilt suites, large coworking areas, conference rooms and event spaces. The interiors are going to be renovated with a “cool and contemporary design that’s European in nature and a mix of casual and interesting while still remaining a very professional place where companies can do business,” Beretta said. He added that the company chose The Lofts because it’s a building with “character” but the project will offer all the amenities of new construction, including a significant retail component.

Spaces already rents at a few other Brookfield properties, including 245 Park Avenue, 1 Liberty Plaza and Brookfield Place. It expects to open at Manhattan West in late 2018.

Pioneering, Luxembourg-based coworking provider IWG Plc (formerly Regus) owns Spaces, which has tried to pitch in urban markets as a trendy competitor to WeWork

The lower half of 424-434 West 34th Street is currently home to several small office tenants. All of them will be vacated by 2021, when Brookfield plans to put the building’s remaining 100,000 square feet of office space on the market.

Source: commercial

Amazon Taking 360K SF at 5 Manhattan West for 2,000-Employee Office

Hot on the heels of Amazon’s new fulfillment center in Staten Island, the e-commerce giant—founded by Jeff Bezos—has signed a 360,000-square-foot deal at Brookfield Property Partners 5 Manhattan West building, the landlord announced today.

The digital retail company will occupy the entire sixth and seventh floors and portions of the eighth and 10th floors of the building, which is located on 10th Avenue between West 31st and West 33rd Streets, bringing the building’s occupancy to 99 percent. The building is a part of Manhattan West, Brookfield’s eight-acre, six-building mixed-use development. A Brookfield spokeswoman declined to disclose the asking rent and term of the lease.

Amazon will move into the building next year. In exchange for creating 2,000 office jobs at the property, the state will give Amazon $20 million in tax credits. A variety of roles will be undertaken at the location, with the e-commerce giant hiring software engineers to data analysts to economists. It will also be the primary location in New York for Amazon’s advertising divisioncomprised of sales, marketing, product, design and engineering staffers.

“We’re excited to expand our presence in New York—we have always found great talent here,” Paul Kotas, Amazon’s senior vice president of worldwide advertising, said in prepared remarks.

Derek Trulson, Josh Stuart, Bill Peters and Clay Nielsen of JLL handled the deal for Amazon, while Brookfield was represented in-house by Jeremiah Larkin, Duncan McCuaig and Alex Liscio and a Cushman & Wakefield team of Bruce Mosler, Josh Kuriloff, Rob Lowe, Ethan Silverstein and Matthias Li. Spokesmen for brokers on both sides of the deal did not immediately return requests for comment.

Brookfield completed a $300 million redevelopment of the 16-story, 1.8-million-square-foot building, formerly known as 450 West 33rd Street (and informally as one of the ugliest buildings in the city), into an all glass structure.

“Amazon’s expansion is the latest example of a leading company drawn to Manhattan West by the unparalleled access, state-of-the-art office space, and experiential culinary, health and wellness and fashion provided by Brookfield’s newest placemaking destination,” Ric Clark, senior managing partner and chairman of Brookfield, said in prepared remarks.

Whole Foods signed a 60,000-square-foot deal to anchor the 100,000 square feet of ground floor retail space at the redesigned building.

As previously reported by Commercial Observer, the Amazon deal at 5 Manhattan West comes just weeks after the company announced a it was opening an 855,000-square-foot, $100 million fulfillment center at the 200-acre Matrix Global Logistics Park. Around 2,250 operations employees will be hired for that new location, and Amazon will receive $18 million in state tax credits in return.

The company also has plans to open a second headquarters that will cost $5 billion to build, and house as many as 50,000 workers, although it has not picked a site for it yet.

Source: commercial

Children’s Clothing Company Moves to Midtown From Garment District

Source: commercial

Trial Firm McKool Smith Seals Deal for 64K SF at 1 Manhattan West

Source: commercial

J.P. Morgan Inks 305K-SF 5 Manhattan West Deal to Expand Tech Arm

J.P. Morgan Chase has signed a 15-year, 305,000-square-foot lease at Brookfield Property Partners5 Manhattan West to triple its offices in the building, a spokesman for the landlord said.

The bank’s technology team, known as FinTech, is expanding from its entire 123,000-square-foot ninth floor offices at the property between Ninth and 10th Avenues (with an alternative address of 450 West 33rd Street) to a footprint of 428,000 square feet.

J.P. Morgan has occupied space in the 16-story structure since 2015 and had been working on the deal for the top three floors, as Commercial Observer previously reported. The asking rent for the new space was in the $90s per square foot, CO noted in April.

Since moving into the building two years ago, the tech arm has grown, which led bank executives to seek more space, according to The Wall Street Journal, which reported on the deal closing. J.P. Morgan expects to have 2,000 to 2,500 employees at the building, the newspaper noted.

A spokesman for Brookfield did not immediately respond to a request for comment.

The 1.8-million-square-foot Brutalist-styled concrete structure was known as one of the “ugliest buildings” in the city until Brookfield renovated it into an all-glass building, as CO reported. Architect Joshua Prince-Ramus of REX did the makeover. The property is part of Brookfield’s five-building, approximately 7-million-square-foot development called Manhattan West.

Cushman & Wakefield’s Bruce Mosler, Josh Kuriloff, Rob Lowe, Ethan Silverstein, Matthias Li and Whitney Anderson represented Brookfield. A spokesman for C&W did not immediately return an inquiry seeking comment. It was not clear which broker represented J.P. Morgan, and a spokeswoman for the company did not answer CO’s questions immediately.

E-commerce giant Amazon is also considering a 350,000-square-foot office deal at 5 Manhattan West, as CO reported in April.

Since its renovation, 5 Manhattan West has attracted other big tenants, including advertising company R/GA and Whole Foods Market.

Source: commercial