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Category ArchiveOffice

Regus Renews 60K-SF at 5 Penn Plaza

Office provider Regus has signed a renewal for 60,000 square feet at 5 Penn Plaza, Commercial Observer has learned.

Regus, which occupies the entire 19th and 23rd floors, of the 26-story building on Eighth Avenue between West 33rd and West 34th Streets will continue to operate in that space for 10 years. The asking rent in the transaction was $68 per square foot, according to information provided by CBRE, the building’s leasing and managing agent.

CBRE’s Peter Turchin, who represented landlord Haymes Investment Company in the deal, said Regus wanted to re-up in the building, because the area is attracting creative companies, Regus’ target market.

“With the ongoing revitalization of Penn Station and the Farley Building directly across the street, 5 Penn Plaza has emerged as a premier leasing option for creative and tech firms,” Turchin said in a prepared statement.

Turchin’s team on the deal included Jason Pollen, Dave Caperna and Hilary Whittier. JLL’s Jim Wenk and Patrick Heeg (now at Transwestern) represented Regus in the transaction.

“It’s a great location because of its proximity to Penn Station,” Wenk said via a spokesman.

Earlier this year, Remedy Partners, which develops and manages bundled payments programs for health insurers, signed a 28,640 square feet of space for pre-built space at 5 Penn Plaza, as CO previously reported. Other tenants at the building include Thomasnet and the Visiting Nurse Service.


Source: commercial

E-commerce Company Bluefly Shrinking HQ in West 39th Street Building

Bluefly, a high-end discount retailer, is consolidating its headquarters at 42 West 39th Street as part of a brand repositioning, Commercial Observer has learned.

After 20 years in 17,000 square feet on the ninth and 10th floors of the property between Fifth Avenue and Avenue of the Americas, Bluefly has signed a new lease for just the 9,585-square-foot ninth floor, according to a release from Adams & Co.

“To continue to stay competitive, Bluefly is focusing on expanding internationally; the company is opening pop-up locations across the globe, starting with a location in Manhattan on 45th Street, just east of Fifth Avenue,” David Levy, a principal of Adams & Co., said in prepared remarks. “This shift in strategy resulted in a need for an updated installation, where employees can work more efficiently as a team.”

Levy and Adams & Co.’s Brett Maslin represented the tenant and the landlord, an LLC affiliated with Adams & Co., in the transaction.

Bluefly plans to completely renovate the space, creating a flexible office format.

Built in 1927, 42 West 39th Street, is an 18-story, 157,748-square-foot commercial office building with tenants like Spanx, Magnusson Architectural and Planning, Fragments Holdings, Wear First and Castlewood Apparel.


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

Fujitsu America, Two Other Tenants Renew at Durst’s 733 Third Avenue

Three tenants—Fujitsu America, Marwood Group and Continental Industries Group—have signed leases to remain at 733 Third Avenue between East 45th and East 46th Streets, Commercial Observer has learned. The 10-year deals were all negotiated in the last few few weeks, with an asking rent of $68 per square foot, according to the landlord, the Durst Organization.

In the largest of the latest transactions, Fujitsu America, which provides a portfolio of business technology services, computing platforms and industry solutions, has renewed a deal to remain in 10,964 square feet on the 17th floor at the Midtown building, as per information from Durst.

Fujitsu, a tenant in the building since 2004, is renovating its suite to accommodate the digital team’s need for an open-concept floor plan, the landlord indicated. Brian Cohen of Newmark Knight Frank represented Fujitsu in the deal. A NKF spokesman didn’t respond with a comment.

Marwood Group, a health care-focused advisory and consulting firm, will continue leasing the 25,438-square-foot 11th floor.

“Marwood has been at 733 Third for almost 10 years,” emailed Dennis Someck of Lee & Associates NYC, Marwood’s long-time exclusive broker. “The building has worked well for them and Durst has been a terrific landlord. After reviewing and evaluating all other options Marwood decided that it made sense to remain in their current location. The Durst team…was terrific to deal with and structured an economically attractive deal to retain Marwood as their tenant.”

And Continental Industries, a global sales and distribution company of chemicals and polymers, will be relocating from the 20th floor to the 7,442-square-foot 21st floor. Michael Joseph of Colliers International represented Continental Industries, a Colliers spokeswoman confirmed, saying that the broker declined to comment.

Durst’s Ashley Gee represented Durst in-house in all three deals.

“We are thrilled to have Fujitsu, Marwood and Continental Industries renew their leases at 733 Third Avenue,” Jonathan “Jody” Durst, the president of the Durst Organization, said in a prepare statement. “It is a great compliment when a tenant stays in our portfolio. We look forward continuing our relationships with these stellar companies.”

Durst erected the Emery Roth & Sons-designed building in 1961. The 24-story, 445,000-square-foot structure is 98.3 percent occupied, Durst’s spokesman said. Major tenants include National Multiple Sclerosis Society, Rodale and Rosenberg & Estis.


Source: commercial

EDC Inks 220K-SF Lease at One Liberty Plaza

The New York City Economic Development Corporation and the Department of Small Business Services have signed on for five floors of office space at Brookfield Property PartnersOne Liberty Plaza, according to a release from the landlord.

The agencies inked a 20-year, 222,137-square-foot lease on the 10th through 14th floors of the 54-story office tower. The asking rent in the deal wasn’t disclosed.

Neil L. Goldmacher, Christopher Mongeluzo and Howard Kesseler of Newmark  Knight Frank represented EDC. Brookfield was represented in-house by Mikael Nahmias and by NKF’s David Falk, Pete Shimkin and Hal Stein. A spokesman for NKF didn’t immediately respond to a request for comment.

“Brookfield is excited to welcome the New York City Economic Development Corporation and Department of Small Business Services to One Liberty Plaza,” said David Cheikin, an executive vice president in Brookfield’s New York office division. “Located in the heart of Lower Manhattan, One Liberty Plaza offers unparalleled commuting patterns for employees and access to the best amenities in Lower Manhattan.”

EDC’s lease comes on the heels of several other major tenants leasing space at One Liberty Plaza. Insurance giant Aon expanded its footprint to 237,000 square feet in August, and Business Insider took 88,000 square feet there in June.


Source: commercial

Bustle Parent Company Expands HQ to 51K SF in Midtown South

BDG Media, the parent company of online publications Bustle and Romper, is expanding its headquarters at Columbia Property Trust’s 315 Park Avenue South by an additional 17,050 square feet, Commercial Observer has learned.

The company currently houses Bustle and Romper’s employees in 34,100 square feet—comprising the entire 10th and 11th floors—of the Midtown South building between East 23rd and East 24th Streets. The new lease will give BDG Media the entire 12th floor, bringing BDG’s footprint in the 20-story, 331,000-square-foot building to 51,150 square feet, according to information provided by the landlord.

BDG moved into the building last year, as CO reported at the time. The asking rent for the 12th floor space was $80s per square foot, according to a source with knowledge of the deal. BDG’s new lease runs concurrent with the old and both are set to expire in 2028.

“BDG Media’s expansion serves as further validation of our efforts to reposition 315 Park Avenue South as the premier Midtown South office destination for New York’s most cutting-edge creative companies,” Adam Popper, a senior vice president at Columbia Property Trust, said in a prepared statement.

Andrew Wiener and David Berkey of L&L Holding Company, which leases and manages the property for Columbia Property Trust, handled the deal for the landlord. Transwestern’s Rory Murphy, Lindsay Orenstein and Jonathan Tootell brokered the transaction for BDG. A spokeswoman for Transwestern did not immediately return a request for comment.

Columbia Property Trust, a publicly traded real estate investment trust based in Atlanta, purchased 315 Park Avenue South for $353.9 million in January 2015, as CO previously reported.

The landlord is currently finishing a renovation of the building that includes an updated lobby, upgrades to the facade and the construction of a separate entrance on East 24th Street for Equinox. A spokeswoman for Columbia Property Trust declined to disclose the price of the renovation, which is expected to be completed by the end of the year.


Source: commercial

Baseball App Hits Home Run With New FiDi Offices

GameChanger Media, the technology firm behind the baseball and softball scorekeeping app of the same name, is moving from just west of City Hall to the Financial District.

The Dick’s Sporting Goods subsidiary just inked a 16,906-square-foot lease for the entire 11th floor of Equity Office’s 44 Wall Street, according to a release from the landlord. The app company will relocate from the 6,700 square feet it currently occupies at 86 Chambers Street.

Asking rent in the deal, which was first reported by The New York Post, was in the high $50s a square foot. The length of the lease wasn’t disclosed.

Haley Fisher and Mitch Arkin of Cushman & Wakefield represented GameChanger.

Equity Office was represented in-house by Zachary Freeman and Scott Silverstein, as well as by Adam Foster, Michael Rizzo, Zachary Price, and Caroline Merck of CBRE.

“The ownership prebuilt to a standard that was creative and high-end, which perfectly fits the culture of GameChanger,” Fisher said in prepared remarks. “Also, given [that] it was already under construction, the space gave them the option to move in quickly.”

CBRE spokespeople didn’t return a request for comment.


Source: commercial

Whisky Company Edrington Relocates in Midtown South

Scottish whisky maker Edrington is moving its New York offices a couple blocks within Midtown South, according to a release from the tenant’s broker Isaacs and Company.

The company, which produces famous Scotch whiskies like The Macallan, Cutty Sark and Highland Park, has signed a 10-year, 25,390-square-foot deal at Rosen Group’s 27 West 23rd Street. It will take over the entire fourth floor of the six-story building between Fifth Avenue and Avenue of the Americas in the first quarter of 2018. Asking rent for the space was $65 a square foot. The New York Post was the first to write about the transaction.

The Glasgow-based company will relocate three blocks north from 150 Fifth Avenue, where it is currently subleasing 12,000 square feet from EMI, a spokeswoman for Isaacs and Company said. In its new home, Edrington will have access to a private entrance at 18 West 24th Street

Isaacs and Company’s Joel Isaacs and Greg Flood represented Edrington, and Olmstead PropertiesDaniel Breiman represented the owners. Olmstead didn’t immediately return a request for comment.

“It’s centrally located in a landmark district, with prime space alongside leaders in diverse industries such as Eataly, Rizzoli, Shake Shack, Anheuser-Busch and Buzzfeed, making it a perfect place for Edrington to grow their U.S.-based operations,” Isaacs said in prepared remarks.


Source: commercial

New York School of the Arts Relocating Within UES

New York School of the Arts has signed a lease to relocate its art school and cultural institution to 315 East 62nd Street between First and Second Avenues, Commercial Observer has learned.

The cultural learning center will be moving out of the National Academy Museum and School at 1083 Fifth Avenue between East 89th and East 90th Streets into 8,619 square feet on the majority of the second floor at 315 East 62nd Street, according to a Lee & Associates NYC news release.

New York School of the Arts is in the process of moving in to its new digs, primarily home to furniture and accessories showrooms, with workshops commencing at the new location on Oct. 15, a Lee & Associates NYC spokeswoman said. The lease is for 15 years, with an asking rent of $62 per square foot.

Kenneth Salzman and Seth Rosen, both of Lee & Associates NYC, represented the tenant in the deal. Steve Marvin of Olmstead Properties worked on behalf of the landlord in-house.

“Our team worked hard throughout the summer to complete this transaction,” Rosen said in a prepared statement. “Ownership was sensitive to the school’s requirements and working in partnership, we were able to develop an expansion plan that accommodates each party’s long-term goals.” (New York School of the Arts has the option to expand to an 8,800-square-foot space on the sixth floor.)

Olmstead Properties acquired the building in September 2007 for $31.3 million, according to property records. Tenants include Renal Research Institute and Weil Cornell Specialty Center.


Source: commercial

Insurance Firm Markel Renews, Relocates at 1185 Avenue of the Americas

Insurance holding company Markel Corporation has agreed to renew its office lease at SL Green Realty Corp.’s 1185 Avenue of the Americas in a 27,505-square-foot deal that will see the tenant relocate within the Midtown building.

Markel inked a 10-year lease to extend its stay at the 42-story, 1.1-million-square-foot office tower between West 46th and West 47th streets, SL Green said in a press release today. The company will take the entire eighth floor at the property and move from its current space on the entire 16th floor, where it occupies roughly the same square footage, in early 2019.

Asking rents at 1185 Avenue of the Americas range from $75 to $100 per square foot, according to a sources with knowledge of the transaction. Cushman & Wakefield’s William Golden represented Markel, while Howard Tenenbaum and Gary Rosen of SL Green handled the deal in-house on behalf of the landlord.

“We’ve enjoyed a long relationship with Markel,” Steven Durels, SL Green executive vice president and director of leasing and real property, said in the release. The insurance firm has occupied the Midtown office building since late 2012, prior to which it was a tenant at SL Green’s 1350 Avenue of the Americas several blocks north, Durels added.

A C&W spokesman did not immediately return a request for comment.

Other tenants at 1185 Avenue of the Americas include marketing firm News America, audit and tax consulting company RSM US, law firm King & Spalding and energy company Hess Corporation. SL Green is currently upgrading the property via renovations including a new lobby, improved entrance and new elevator cabs.

The National Hockey League announced late last year that it will leave the Midtown building—where it currently occupies around 145,000 square feet including a ground-floor retail store—to move into a new 160,000-square-foot office at Brookfield Property Partners1 Manhattan West near Hudson Yards in 2019.


Source: commercial