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Category ArchiveNick Zarnin

Direct Mail Startup PebblePost Inks Deal to Quadruple Its Offices

PebblePost, a direct mail marketing startup, recently signed a 19,644-square-foot deal at 400 Lafayette Street to nearly quadruple the size of its offices, Commercial Observer has learned.

The company, which uses its software to learn consumers’ computer search habits and target them with printed advertisements for products, moved into its new digs earlier this month and is occupying the entire second floor of the five-story building, which is located at the corner of East 4th Street in Noho.

The asking rent in the deal was $75 per square foot, according to information provided by ABS Partners Real Estate

“400 Lafayette Street offers large, open floor plates that allow businesses to build  offices that foster creativity and encourage collaboration,” said ABS’ James Caseley in prepared remarks, who represented landlord Sand Associates with colleagues Charles Conwell and Joseph LaRosa. “The second floor provided the ideal amount of space for PebblePost, which is in the midst of an explosive expansion.”

PebblePost relocated from nearby 36 Cooper Square between East 5th and East 6th Streets, where it had 5,000 square feet.

Since PebblePost’s founding in 2014, the company has raised $63 million, according to Crunchbase. This year alone it raised $47 million with a combination of equity and debt.

“PebblePost was in immediate need of a larger space to accommodate its rapidly growing staff,” Savills Studley’s Craig Lemle, who represented PebblePost with colleague Nick Zarnin, said in a prepared statement. “The space at 400 Lafayette provides PebblePost the ideal location, size and buildout to move in quickly and continue to grow in a space that is in line with the company’s culture and business objectives.”

Existing tenants at 400 Lafayette include event ticket marketplace SeatGeek, advertising and technology company TripleLift and La Colombe Coffee Roasters.

Source: commercial

Holwell Shuster Subleases 60K SF at 425 Lexington Avenue From Fellow Law Firm

Holwell Shuster & Goldberg is subleasing nearly 60,000 square feet of office space at 425 Lexington Avenue in Midtown East from fellow law firm Simpson Thacher & Bartlettin a move that will double Holwell Shuster’s existing office footprint.

The 16-year deal will see Holwell Shuster take 59,750 square feet, comprising the entire 12th through 14th floors of the 31-story, 750,000-square-foot building between East 43rd and East 44th Streets, adjacent to Grand Central Terminal.

The law firm—which was founded in 2012 and specializes in commercial litigation—will double its existing, roughly 30,000 square feet of space at 750 Seventh Avenue when it relocates at the end of the year, according to a press release from Savills Studley announcing the transaction.

Rents were not disclosed. Savills Studley’s Craig Lemle and Nick Zarnin represented Holwell Shuster, while a CBRE team of Lewis Miller, Gregg Rothkin, Peter Turchin, Ramneek Rikhy, James Ackerson and Ken Rapp represented Simpson Thacher.

The New York Post first reported the news of the deal.

According to the Savills Studley release, the brokerage sought to “take advantage of the tremendous amount of consolidation occurring within the law firm community” in identifying space for Holwell Shuster. The law firm was subsequently able to secure the sublease at 425 Lexington Avenue at “a favorable rent with a substantial concession package.”

“While the majority of the legal industry is downsizing, [Holwell Shuster] stands as a rare example of growth,” Lemle said in a statement. “Many law firms are consolidating their real estate footprints to smaller, more efficient layouts in an effort to reduce costs, and this particular consolidation presented an incredible opportunity.”

A CBRE spokeswoman declined to comment.

The J.P Morgan Asset Management-owned 425 Lexington Avenue is 100 percent leased to Simpson Thacher and the Canadian Imperial Bank of Commerce—both of which originally signed on at at the 30-year-old building upon its completion in 1987.

The space taken by Holwell Shuster constituted the only availability at the office tower since it was built, according to the Savills Studley release. After subleasing the space to the law firm, Simpson Thacher will still occupy roughly 490,000 square feet at the property, the Post reported.

Source: commercial

Reinsurance Firm Grows NYC Presence With 19K-SF Lease at 437 Madison Avenue

Reinsurer Munich American Reassurance Company is expanding its New York office footprint after agreeing to take 18,650 square feet of space at the William Kaufman Organization’s 437 Madison Avenue in Midtown.

Munich American, a subsidiary of German reinsurance giant Munich Re Group, signed a 10-year deal for the entire 26th floor of the 40-story, 850,000-square-foot property between East 49th and East 50th Streets, William Kaufman said in a press release Tuesday announcing the transaction.

Asking rent in the Munich American deal was $90 per square foot, sources said, with asking rents at 437 Madison Avenue ranging from $80 to $110 per square foot, according to William Kaufman. The New York Post first reported the news of the transaction.

The reinsurance company plans to use the new space to accommodate its “rapidly expanding” financial reinsurance and integrated analytics teams, as well as grow its actuarial capabilities by “tapping into the strong actuarial talent pool that exists in the New York insurance and reinsurance market,” Mike DeKoning, the president and chief executive officer of Munich American, said in a statement.

Munich American presently occupies 24,625 square feet comprising the entire 15th floor at Silverstein Properties1177 Avenue of the Americas, according to CoStar Group data. It will retain that office and plans to assume the space at 437 Madison Avenue by the fourth quarter of this year.

Nick Zarnin and Craig L. Lemle of Savills Studley represented Munich American in the deal, while Michael Lenchner of Sage Realty Corporation—William Kaufman’s leasing and management division—and a JLL team of Frank Doyle, David Kleiner, Cynthia Wasserberger, Hayley Shoener and Harlan Webster represented the landlord.

Zarnin confirmed the transaction to Commercial Observer, noting that Munich American was drawn to the property’s location “within proximity of their current employees” at 1177 Avenue of the Americas.

He also said the reinsurance company has “a strong bit of flexibility” as far as options to expand its space in the future if needed, and added that William Kaufman was “willing to build out the space for the client” while covering the entire cost of doing so.

“We’re giving them a [floor] plan, and they’re going to build the space to our plan using their building-standard finishes,” Zarnin said.

William Kaufman also announced two separate, smaller transactions for office space at 437 Madison Avenue: a seven-year deal with alternative investment firm Eos Management for 9,576 square feet on a portion of the 14th floor; and a 7,458-square-foot expansion by law firm Montgomery McCracken Walker & Rhoads, which now has 35,755 square feet at the property comprising the entire 23rd and 24th floors.

Eos Management, which plans to move from its current offices at 320 Park Avenue in the third quarter, was represented by Lindsay Ornstein and Lauren Davidson of Transwestern. Montgomery McCracken—which inked its initial 28,297-square-foot direct lease at the building in December—had no broker on its deal.

Sage Realty’s Lenchner attributed William Kaufman’s recent success in leasing up 437 Madison Avenue to a recently completed, $60 million capital improvement program at the 50-year-old office tower. The building now has a redesigned lobby and arcade area, renovated elevators, upgraded building systems and a new “sky lounge” on the 15th floor featuring outdoor conference rooms.

“These new leasing transactions further demonstrate the ongoing resurgence of the Grand Central office district, the quality of our building and our convenient and desirable location,” Lenchner said in a statement.

Earlier this year, William Kaufman signed investment firm Lighthouse Investment Partners to a 17,750-square-foot lease for the entire 21st floor at the building, as CO first reported. The landlord also signed another financial services tenant, Prelude Capital, to a 19,524-square-foot renewal and expansion for portions of the 33rd and 34th floors late last year.

Other tenants at 437 Madison Avenue include Omnicom Group, the Carnegie Corporation of New York and Medallion Financial Corp.

Source: commercial