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Category ArchiveOffice

Complex Expands With a Move to Part of Yahoo’s Office in Times Square

Complex Networks, the umbrella company that includes Complex and its sub-brands like First We Feast and Pigeons and Planes, is moving to the old New York Times Building.

The hip-hop-influenced media company subleased 80,000 square feet from Yahoo at Columbia Property Trust’s 229 West 43rd Street between Seventh and Eighth Avenues, Crain’s New York Business reported. Complex plans to leave its longtime, 64,000-square-foot office space at 1271 Avenue of the Americas between West 50th and West 51st Streets and take over the Yahoo space next week. Yahoo occupies 193,000 square feet in the historic, 482,000-square-foot property.

Rich Antoniello, Complex’s chief executive officer, told Crain’s that Yahoo’s offices appeal to the company because the space features four video production studios. Complex, like many media outlets, is focusing heavily on expanding its short-form videos, and it recently partnered with cable music channel Fuse. Over the past year, it has grown its slate of programs to 33 daily and weekly shows, focused largely on talk shows and reality shows.

Not surprisingly, Yahoo and Complex are both owned by Verizon. The telecom giant acquired Yahoo over the summer and purchased Complex a year ago in a joint venture with Hearst Communications.

Spokespeople for Yahoo and Complex didn’t respond to requests for comment, and the terms of the deal were not disclosed.

Source: commercial

Ad Agency Momentum Worldwide Heads to 60K SF at Brookfield Place

Ad agency Momentum Worldwide is packing up its Hudson Square offices and heading Downtown to Brookfield Place.

The Interpublic Group subsidiary has signed on for 60,000 square feet via a 10-year lease at Brookfield Property Partners300 Vesey Street, The Real Deal reported. Momentum’s new home includes the entire top floor of the 15-story building, part of the 14th floor and a private roof deck. Asking rent in the deal wasn’t immediately available.

JLL’s Scott Panzer, Robert Romano and Shannon Rzeznikiewicz represented Momentum in the deal, and it’s unclear who handled the transaction for Brookfield. Neither company’s spokesman responded to a request for comment.

Momentum will decamp its current space on the second and third floors of Jack Resnick & Sons250 Hudson Street for Brookfield Place in May 2018, according to information from CoStar Group.

In recent years, the marketing company, which has 2,000 employees and 40 offices, has run campaigns for American Express, Chevron, Microsoft, Coca-Cola, SAP and Verizon, as well as many other high-profile clients.

Other tenants in the 522,000-square-foot, 21-year-old building include CME Group, Pell Brothers Trading, Smith & Moore and KCG Holdings, CoStar indicates.

Source: commercial

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

Lace Designer Klauber Brothers Relocating Garment District Office

Lingerie lace supplier Klauber Brothers is relocating its headquarters within the Garment District after agreeing to take just over 9,000 square feet of office space at 253 West 35th Street, Commercial Observer has learned.

Klauber signed a 10-year deal earlier this month for the entire 11th floor of the 16-story, 136,000-square-foot building between Seventh and Eighth Avenues, according to sources with knowledge of the transaction. The lacemaker is expected to move to the 9,061-square-foot space in March from its current offices at nearby 980 Avenue of the Americas.

Asking rent in the deal was $46 per square foot. Alan Bonett and Bradley Cohn of Adams & Co. represented the landlord, Shulsky Properties, while Klauber was represented by Jonathan Schifrin of Transwestern.

“While the company needed more space to accommodate its employees and clients, it was important that it remain within the Garment District, where it’s been rooted for years,” Bonett said in a statement. The 11th-floor space features “polished concrete floors, open ceilings and an open floor plan with private offices that will give the business the flexibility it needs,” he added.

Representatives for Transwestern did not immediately provide comment.

The family-owned and operated Klauber Brothers, which was founded in Germany in 1859, designs and manufactures lace for the lingerie and dressmaking industries. The company is best known as the lace supplier for the popular Hanky Panky lingerie line.

Other tenants at 253 West 35th Street include drywall and ceiling contractor Curtis Partition, which took more than 9,000 square feet at the building earlier this year, as CO reported in August.

Source: commercial

Monday Properties Doubling Office Space With 16K-SF Lease on East 55th Street

Real estate investment firm Monday Properties has signed a lease for 16,336 square feet at Park Avenue Tower at 65 East 55th Street, in a move to double its presence in Manhattan, Commercial Observer has learned.

Monday Properties will be taking the entire 27th floor at the Equity Office-owned property between Park and Madison Avenues, through a 16-and-a-half-year lease, a source told CO. The asking rent was between $135 and $140 per square foot.

The firm will relocate in the third quarter of 2018 from 667 Madison Avenue between East 60th and East 61st Streets, where it occupies 8,460 square feet, due to “organic growth,” the source said.

Equity Office purchased the 36-story, 615,000-square-foot tower in 2014 for $750 million. Last year, the company committed $25 million for its renovation, as CO previously reported.

Tenants include Eminence Capital, Cyrus Capital Partners, King Street Capital, National Bank of Canada, ICM Partners and Tower Brook Capital Partners.

JLL’s Alexander Chudnoff and Benjamin Bass represented Monday Properties in the deal and Newmark Knight Frank’s Jared Horowitz, Brian Waterman, Lance Korman, Ben Shapiro and Brent Ozarowski worked on the landlord’s behalf. Spokesmen for both companies didn’t respond with comments.

Source: commercial

Business Software Provider Behavox Moving to MHP’s 180 Maiden Lane

Business compliance software startup Behavox is moving its New York City offices to 180 Maiden Lane in the Financial District, where the company is taking 12,372 square feet, Commercial Observer has learned.

Behavox signed a 10-year deal last week for the space on the 10th floor of the 41-story, 1.2-million-square-foot office tower between Front and South Streets, overlooking the East River, according to sources with knowledge of the transaction.

The London-based firm, which plans to expand its workforce in the wake of a recently sealed $20 million funding round, is expected to move to its larger new office in January from its current location at nearby 110 William Street.

Asking rent in the deal was $58 per square foot, sources said. A Cushman & Wakefield team of Frank Cento, Tara Stacom, Rob Lowe and Justin Royce represented landlord MHP Real Estate Services alongside MHP’s in-house team of Jesse Rubens, Richard Doolittle and James Tamborlane. Tamborlane and MHP’s Matthew DeRose worked on behalf of the tenant.

The 10th-floor space previously was occupied by e-commerce jewelry brand Chloe + Isabel, which signed a roughly 30,000-square-foot lease for the entire floor in 2016. But the jeweler has since downsized its footprint to under 12,000 square feet after growing at a slower pace than anticipated, according to sources—giving back to MHP the space that will be occupied by Behavox and subleasing out around 6,500 square feet to financial services firm LiftForward on a short-term basis.

As such, Behavox’s new space already features a “high-end” buildout, sources said, with the software firm also drawn to tenant amenities at 180 Maiden Lane that include a 200-seat conference center, a full-service cafeteria and a fitness studio.

Representatives for MHP confirmed the transaction, while spokespeople for C&W did not immediately return a request for comment.

Other tenants at 180 Maiden Lane include the New York City Department of Investigation—which recently agreed to take 276,000 square feet at the building, as CO reported in August—law firm Stroock & Stroock & Lavan and television production company True Entertainment.

Source: commercial

TCS, Youth Education Organization Join Cornell Tech’s Commercial Tenant Roster

Fresh off of securing a $50 million investment from information technology consulting firm Tata Consultancy Services (TCS) for its Cornell Tech campus on Roosevelt Island, Forest City New York has signed both TCS and youth education organization First New York City to leases at the newly minted Tata Innovation Center—the Cornell Tech building formerly known as The Bridge.

TCS inked a 10-year lease for 7,900 square feet on the third floor of the six-story, 235,000-square-foot building, while First NYC agreed to a five-year deal for 3,300 square feet on the sixth floor, sources told Commercial Observer. Both tenants are slated to move into their new spaces next year.

TCS and Forest City announced the IT consultancy’s sizable investment in Cornell Tech on Monday, which they said would assist “the first phase of capital development on the Roosevelt Island campus” and provide support for “technology research and expanding K-12 digital literacy programs” in New York City public schools.

The Weiss/Manfredi-designed building, which now bears the Tata name, will house a mix of Cornell Tech academic uses as well as commercial tenants including Citigroup, tech investment firm Two Sigma and chocolate manufacturer Ferrero International—all of which are expected to leverage and collaborate with the tech and research resources found on the 2-million-square-foot Roosevelt Island campus, which partially opened this past fall.

Asking rents in the deals were not clear. A CBRE team of Mary Ann Tighe, Evan Haskell, David Caperna, Evan Fiddle, Sacha Zarba and Ross Zimbalist represented Forest City in the transaction, while Newmark Knight Frank’s Neil Goldmacher and Josh Friedman worked on behalf of First NYC. TCS had no broker representation.

“Cornell Tech and Forest City envisioned the [Tata Innovation Center’s] tenancy as a highly diverse group of top-tier companies and institutions that would collaborate with students and faculty, using technology to drive innovation,” Tighe said in a statement.

Ali Esmaeilzadeh, Forest City New York’s senior vice president of commercial development and director of commercial leasing, said in a statement that the companies comprising Cornell Tech’s growing commercial tenant roster have been drawn to the campus “not because they’re just looking for office space in New York City.”

“They want a front-row seat to the best tech talent and researches and to be a part of the unique ecosystem of innovation Cornell Tech has built on campus,” he said.

Representatives for NKF did not immediately provide comment.

Source: commercial

Morton Williams Plans Supermarket at One West End Avenue

Morton Williams is opening another store on the Upper West Side.

The 63-year-old grocery chain has leased 29,400 square feet on the ground floor and lower level of One West End Avenue, the first building in the five-tower Riverside Center development, The New York Post reported. Asking rent in the 25-year deal was $85 per square foot.

The store, set to open in 2018, will offer patio seating for shoppers, kosher merchandise and plenty of grab-and-go options, according to the Post.

The grocer will anchor a 43-story, 365-unit highrise between West 59th and West 60th Streets designed by Pelli Clarke Pelli. Thanks to the 421a tax exemption program, the project has 249 residential condominiums and 116 affordable rentals, with the rental and condo portions served by separate entrances. Available condo units in the building are priced from $1.5 million for a one-bedroom to $21 million for a four-bedroom, five-bath penthouse, according to StreetEasy.

Lee & Associates’ Brad Schwarz represented Morton Williams in the transaction, and Gary Alterman, Richard Gelber and Scott Zinovoy of RKF handled the deal on behalf of the landlords, Elad Group and Silverstein Properties.

“I think it would be a great amenity to the neighborhood, which I think is underserved for a high-level product like Morton Williams,” Schwarz told Commercial Observer. “I live in the area, and it’s a rapidly evolving area. With an additional 5,000 residential units coming online, I think this will be coming at the right time.”

Schwarz added that over the past year he’s worked on deals to bring Landmark Theatres and Greek restaurant Ousia to Durst Organization’s Via 57 West, which is two blocks from One West End. And across the street at 21 West End Avenue, he helped sign a recently-opened Soul Cycle.

Source: commercial

Grubhub to Triple Its Midtown Offices Near Bryant Park to 79K SF

Online food ordering company Grubhub has signed a renewal and expansion at Equity Office’s 5 Bryant Park to triple its footprint to 79,219 square feet in the Midtown building, Commercial Observer has learned.

The company, which merged with Seamless in 2013, already occupies the entire 26,681-square-foot 15th floor of the 34-story, 680,000-square-foot building at the corner of West 40th Street and Avenue of the Americas.

Grubhub will now take the entire 31,914-square-foot 12th floor as well as 20,624 square feet of the 13th floor, according to the company’s latest quarterly filing in November. Asking rents in the building range from $75 to $100 per square foot. The deal is for 11 years and two months beginning after August 2018, according to the company’s public filing.

“The Bryant Park submarket continues to be one of the most attractive in the city for growing creative companies that are drawn to its world-class dining, retail, and hotel options, expansive public spaces, and unrivaled access to transportation,” Zach Freeman of Equity Office, who handled the deal in-house with colleague Scott Silverstein, said in prepared remarks.

In addition to its New York offices, Grubhub has outposts in London and Chicago. It’s online and mobile food ordering services are avaliable in more than 1,300 cities around the country and London, according to its website.

Freeman and Silverstein worked alongside a Newmark Knight Frank team of Brian Waterman, Josh Gosin, Lance Korman, Alexander Radmin and Brent Ozarowski. CBRE’s Jeff Fischer handled the deal for Grubhub. Spokespersons for NKF and CBRE did not immediately return requests seeking comment.

Equity Office completed a more than $40 million renovation of the 1958 building at 5 Bryant Park in 2015. It included a redesign of the tower’s dual lobbies, renovation of the 40th Street entrance and canopy, and modernization of the elevators.  

Existing tenants in the building include architecture firm HOK, consulting company Schireson Associates and TJX Companies.

Source: commercial

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