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Category ArchiveSacha Zarba

Industrious Moving HQ to Union Square From Brooklyn With 14K-SF Deal

Bye bye, Brooklyn!

Flexible office space provider Industrious has signed a 14,484-square-foot lease at SL Green Realty Corp.’s 215 Park Avenue South to relocate its headquarters to the same building where it has its only Manhattan location, Commercial Observer has learned.

The company will move to the entire 13th floor of the 20-story property between East 17th and East 18th Streets, according to a spokeswoman for Industrious. It already leased the entire 17,500-square-foot 11th and 17,255-square-foot 12th floors in the building for roughly 35,000 square feet for shared offices for its members, as CO previously reported. All told, Industrious will occupy more than 49,000 square feet of the 330,000-square-foot property.

The new transaction is for three years and the asking rent was $70 per square foot.

Industrious has been growing rapidly and the company recently landed $80 million in a Series C funding led by Fifth Wall Ventures and Riverwood Capital, as CO reported last month.  

“We’ve had a very busy year and are excited to continue our momentum coming out of our $80 milion funding news a few weeks ago,” Industrious President Justin Stewart said in a prepared statement to CO. “To date, our national team has worked out of the Industrious Brooklyn space, but at the beginning of this year we outgrew our space there.”

The majority of Industrious’ 80 employees will relocate from the headquarters at
594 Dean Street between Carlton and Vanderbilt Avenues in Prospect Heights where it has just under 2,000 square feet for its corporate offices, according to a spokeswoman for the company.

Industrious has 35 locations across the country, and recently reached a milestone with a total of 1 million square feet of space.

CBRE’s Sacha Zarba and Alice Fair handled the deal for the tenant with Katharine Lau, the director of real estate for Industrious, . A spokeswoman for the brokerage did not immediately return a request seeking comment from Zarba. Howard Tenenbaum and Gary Rosen represented SL Green in the transaction in-house.

A spokesman for the landlord did not immediately provide a comment.

Source: commercial

Uber Takes 35K SF at 1400 Bway for Second Manhattan HQ

Uber is cruising into new digs spanning nearly 35,000 square feet at 1400 Broadway.

The San Francisco-based ride-hailing company has taken 34,600 square feet on the entire 12th floor at the building between West 38th and West 39th Streets, landlord Empire State Realty Trust told Commercial Observer.

The office will serve as Uber’s second Manhattan headquarters, primarily housing Uber’s engineering team, according to The New York Post, which first reported news of the deal. Uber’s other Manhattan space is about 52,000 square feet inside The Terminal Stores warehouse complex at 636-638 West 28th Street in Chelsea, as CO previously reported.

Marc Donner, Uber’s director of engineering, said in a prepared statement provided to CO: “New York City has become the tech hub of the East Coast and we are excited to expand our engineering footprint here. With this new space, we plan to grow our engineering office and attract the top tech talent in the city.”

The asking rent in the 1400 Broadway deal was $62 per square feet, an ESRT spokeswoman said, declining to provide the length of the lease.

Thomas P. Durels, the director of leasing and operations for ESRT, said in a prepared statement: “In addition to the desirable location, 1400 Broadway has been modernized for the 21st century; will soon feature an expanded lobby and is located in the convenient Times Square South neighborhood just steps from Bryant Park.”

The building at 1400 Broadway is 37 stories and 927,683 square feet. As CO reported last September, immigration law firm Fragomen, Del Rey, Bernsen & Loewy leased three full floors at the property. That lease was for 16 years.

CBRE’s Sacha Zarba and Alice Fair represented Uber in the deal. The brokers declined to comment via a spokeswoman. ESRT’s Keith Cody represented the landlord in-house, along with Newmark Knight Frank’s Scott Klau, Erik Harris and Neil Rubin. A spokesman for NKF didn’t immediately respond to a request for comment.

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

Netflix Subleases Space from Twitter for New York City Offices [Updated]

Movie and TV online streaming giant Netflix has signed a subleased space from social media company Twitter at 245 West 17th Street.

The digital video company has inked 11,592 square feet for the entire 10th floor of the property between Seventh and Eighth Avenues in Chelsea, according to a news release from brokerage CBRE. The asking rent in the five-year deal was not immediately clear.  

A CBRE team of Timothy Hay, Robert Hill, Jared Isaacson and Sacha Zarba handled the deal for Netflix, while Cresa PartnersBarry Spagna and Eric Thomas represented Twitter in the transaction.

Netflix, which is headquarter in Los Gatos, CA, has office locations around the country and the globe, including in Brazil, Japan and South Korea.

A spokeswoman for CBRE did not immediately respond to a request for further information, and Spagna declined to comment on the transaction.

Twitter has been subleasing parts of its 140,000-square-foot east coast offices at the building as the company has been going through growing pains and its stock price fell, as The Real Deal reported last year. TRD said the asking rent was in the mid to high $60s per square foot for subleased space at the time. In addition to Netflix, Twitter has also subleased 24,000 square feet at the property to Major League Baseball, as CO reported in November 2016.  

“We’re always looking at ways to use our office spaces more efficiently and effectively,” a spokeswoman for Twitter said via email. “We remain committed to Twitter’s presence in New York.”

Twitter originally leased the space in January 2014, just after it went public in November 2013 with a stock price of $26 a share. The stock’s value has fallen steadily over the years and currently rests just above $16 per share.

The company posted its second quarter results on July 27, which showed revenue of $574 million, a decrease of 5 percent year-over-year, during that quarter. Its daily active usage increased 12 percent year-over-year in that period, the company said.

A representative for Netflix did not immediately responded to inquiries seeking comment.

New York REIT, a publicly traded real estate investment trust, purchased the nearly 150,000-square-foot building from Savanna for $335 million in August 2014.

Update: This story was edited to include a comment from a Twitter spokeswoman.

Source: commercial

Kushner Companies Turns to NKF to Finish Dumbo Heights Office, Retail Leasing

Early last year, Kushner Companies tapped a CBRE team to lease up the remaining 350,000 square feet of office space at the 1.2-million-square-foot, five-building Dumbo Heights campus along the Brooklyn waterfront. Now, with 100,000 square feet remaining in two of the buildings, Kushner has replaced CBRE with Newmark Knight Frank, Commercial Observer has learned.

The largest available block, 75,000 square feet, is in 77 Sands Street, according to information provided by NKF, with the remainder at 55 Prospect Street. Leases will be for two years or longer.

“It is clear why Dumbo Heights is rapidly becoming the area’s most sought-after destination,” NKF’s Whitten Morris, who will head the leasing efforts with colleague Joseph Sipala, said in prepared remarks. “This campus offers exciting conveniences with its office, retail and lifestyle amenities while offering a collaborative work environment that cutting-edge companies are seeking. With the added benefit of its modern amenities, any tenant would thrive in this environment.”

Office tenants in the Dumbo complex, which Kushner owns with LIVWRK and RFR Realty, include WeWork, 2U, Etsy, Prolific Interactive and Frog Design.

In February 2016, Kushner hired CBRE’s Sacha Zarba and Jeffrey Fischer to lease up 350,000 square feet of office space at the property, as CO reported at the time, while RKF was elected to market the retail portion.

Retail tenants include Yoga Vida, Shadowbox, Bluestone Lane, Untamed Sandwiches, Taco Dumbo and Randolph Beer.

NKF’s Harrison Abramowitz is now assuming the retail assignment, which includes 18,525 square feet, according to a spokesman for the landlords, who declined to comment on the retail brokerage change. A spokeswoman for RKF confirmed the retail-focused brokerage was no longer on the project, but didn’t immediately respond to an inquiry for a comment beyond that.

“CBRE did a great job of helping to establish Dumbo Heights as a thriving, collaborative office campus that some of New York City’s most cutting-edge creative firms now call home,” Asher Abehsera, the chief executive officer and founder of LIVWRK, said in a statement provided to CO. “The NKF team currently occupies space on the campus and represents a new iteration for the project, bringing a fresh, on-the-ground perspective and understanding of tenant needs.” (NKF occupies space at 55 Prospect Street for a full-service office dedicated to the Brooklyn commercial market.)

Spokesmen for the owners and NKF declined to provide asking rents. A spokeswoman for CBRE said the brokers declined to comment.

Source: commercial

Shaving Startup Heads to One Hudson Square

Online men’s razor company Harry’s is packing up its headquarters and moving a few blocks within Hudson Square.

The four-year-old startup is relocating its offices to Trinity Real Estate’s 75 Varick Street, also known as One Hudson Square, according to a press release from the governor’s office.  

Harry’s inked a 10-year deal for 60,000 square feet on June 1. To incentivize their expansion, the Empire State Development Corporation offered the business $1.4 million in tax credits through the Excelsior Jobs Program. In exchange, they’ve pledged to create 188 new jobs over the next five years.

The company has occupied a 25,000-square-foot space at Stellar Management’s 161 Avenue of the Americas (now part of One Soho Square) since January 2016.

The subscription shave supply service reportedly has more than 2 million customers. Last year, it teamed up with Target to sell German-made razors and skincare products on the discount retailer’s website and in its stores.

“We’re extremely humbled by the growth we’ve seen over the past four years,” said Harry’s co-Founder and co-Chief Executive Officer Andy Katz Mayfield in prepared remarks. “This relocation symbolizes a major step in Harry’s journey. We’re thrilled to remain close to our roots, thankful for the support of the Excelsior Jobs Program, and we look forward to the continued expansion of our team under a new roof.”

Newmark Knight Frank’s David Falk, Pete Shimkin, and Kyle Ciminelli represented  Trinity in the deal. CBRE’s Sacha Zarba, Fredrick Fackelmayer and Chris Mansfield represented the tenant. Asking rents weren’t immediately available. A spokesman for NKF didn’t immediately respond to a request for comment.

“We were thrilled to assist Harry’s in finding a new home for their U.S. headquarters,” Zarba of CBRE said in a press release. “One Hudson Square allows Harry’s to remain in a vibrant neighborhood with the ability to scale and accommodate their long-term growth. The building’s terrific ownership and planned building improvements were important drivers toward the ultimate decision by Harry’s to relocate to One Hudson Square.”

Source: commercial

Financial Tech Company Signs 11K-SF Sublease to Move Within Flatiron District

TrueEX has signed a 10,600-square-foot sublease at 22 West 21st Street with sublandlord Group SJR, according to a news release from brokerage CBRE.

The financial technology company will occupy the entire ninth floor of the building between Fifth Avenue and Avenue of the Americas. A CBRE spokeswoman declined to disclose the terms of the deal. In a similar sized deal a year ago, where Simons Foundation took the entire 10th floor, the asking rent was $65 per square foot, according to CoStar Group.

The 101,368-square-foot, 12-story building is a commercial co-op, according to property records.

CBRE’s Mary Ann Tighe, Lauren Crowley, Jared Isaacson, Gregory Tosko and Sacha Zarba represented digital consultancy company Group SJR, a subsidiary of advertising and public relations firm WPP. Meanwhile, Anthony Sciacca of Newmark Grubb Knight Frank represented TrueEX in the deal. The spokeswoman for CBRE declined to comment beyond the details in the release, and Sciacca did not return an inquiry seeking more details via NGKF’s spokesman.  

TrueEX is moving from its current address nearby at 162 Fifth Avenue between West 21st and West 22nd Streets to its new digs in the summer. A representative for TrueEX was not immediately available for comment.

Tenants at the 22 West 21st Street building include cartoon creator Frederator Networks, sports clinic Sport Medicine at Chelsea and data company TayKey.

Source: commercial