All work, no play, was the right medicine for 1460 Broadway. Joint owners Himmel + Meringoff and The Swig Co.’s capital fixes and strenuous leasing effort have lured WeWork, the shared-workspace provider with an insatiable appetite for Manhattan digs.
WeWork signed a lease for all of 1460 Broadway’s 180,000 square feet of office space. The deal follows WeWork’s 240,000 square-foot bite out of 85 Broad St. in February, first reported by Lois Weiss.
The new, 19-year lease was signed on March 31 — the same day law firm Skadden Arps, which had used the location for back-office services, moved out. “Perfectly orchestrated synchronicity” was what Himmel + Meringoff co-principal Stephen Meringoff called it.
The firm’s other co-principal, Leslie Himmel, said that since last fall, “Our management and leasing team led by Farrell Virga and Jason Vacker worked literally round the clock marketing the property.”
WeWork has 15 other Manhattan locations, but this is its first Times Square-area address.
The deal leaves unoccupied only 1460 Broadway’s 2nd and 3rd floors, which will be combined with existing ground-floor storefronts when they become available in December to create a 35,000 square-foot retail unit being positioned as a multi-level flagship. The storefronts sport a new glass facade by MdeAS Architects and the building will soon boast large LED signs.
As we reported last August, San Francisco-based Swig (no relation to New York’s Kent Swig Equities) bought out its former 49 percent partner in the property, Blackstone Group, and brought in Himmel + Meringoff as its operating partner.
The owners spent $25 million to bring the dour 1951 structure at West 41st Street, next door to the just-opened Knickerbocker Hotel, into the modern age.
Terms of WeWork’s lease were not disclosed. Last summer, we reported that office asking rents would range from the high $50s to the mid-$60s per square foot.
So, what’s the story with the Moinian Group’s 3 Hudson Boulevard? Will it be the next office skyscraper to burst out of the ground in the increasingly crowded Hudson Yards Redevelopment district?
Joseph Moinian’s planned, 66-story, 1.8 million square-foot tower could be just six months from getting the green light, says Avison Young co-principal and New York-area President Arthur Mirante II.
“I will be very disappointed if we don’t make an announcement of an anchor tenant within six months,” said Mirante, who heads an Avison Young leasing team project including Michael Gottlieb and Anthony LoPresti.
The tower is to rise on what Mirante calls a “unique site” — nearly 2 acres bounded by Eleventh Avenue, the new Hudson Boulevard and Park, and West 34th and 35th streets, just steps from the new No. 7 train station and the High Line Park.
But an air of uncertainty has hung over 3 Hudson Boulevard — which Mirante sought to dispel.
There’s no question it’s a helluva piece of work. The striking design by FX Fowle’s Dan Kaplan, which gently turns as it rises, aims to exceed LEED platinum standards. It will boast solar-power generation; 14-foot slab-to-slab floor heights; base floors of 48,000 feet and above those, column-free 33,000 square-foot floors. The tower will offer unobstructed views to the west.
But, there’s been no word (or even rumors) of tenant signings. Moinian still needs to complete some steps, including air-rights purchases, before construction can start.
Moreover, Moinian has said floors 49 to 63 “could” be used for luxury condos — suggesting the project is in flux. “He hasn’t really refined it,” one big-name dealmaker snarked.
“I do think the timing for 3 Hudson Boulevard has come,” Mirante said. “But I don’t think Joe will build without an anchor tenant. There’s no intent to build on spec.” However, Moinian and the MTA are already jointly working on the foundation (part of which is shared with the new No. 7 train extension, which will open soon).
To get 3 Hudson Boulevard out of the ground, Moinian needs a half-million square-foot tenant commitment, Mirante said.
“We have three seriously interested tenants, two of them large enough to be anchors,” he said.
Two of them are financial firms. Mirante not surprisingly wouldn’t say who; a check with several leading Manhattan brokers who are normally plugged in found none who’d heard of talks.
Mirante said the air-rights purchases will “happen in the next couple of months.” He also revealed an ace in the hole for Moinian: a government credit worth up to $100 million for site-remediation work the developer quietly completed a few years ago.
As for possible condos, “We’re telling our anchors, ‘If you don’t want residential in the building, don’t worry — we can convert it to all offices.’ That would raise total rentable office space to 1.9 million square feet,” Mirante said.
Gross asking rents on lower floors are $89 a square foot, Mirante told us. It was previously reported that asking rents would reach $100 a square foot on higher floors. Late 2018 or early 2019 remains the target date for completion.
Meanwhile, so many giant projects are underway in the area, it’s hard to keep up with them all.
They bring 4 million square feet of brand-new space to market even after major recent deals are taken into account — and thus, competition for 3 Hudson Boulevard.
Related Cos./Oxford’s 10 Hudson Yards (for Coach Inc. and other tenants) has risen to 31 of 52 stories. Their 30 Hudson Yards (for Time Warner) “goes vertical” in July. And at Mitsui Fudosan/Related/Oxford’s 55 Hudson Yards, foundation work is underway; a Related source said they’re “trading paper” for all of that project’s 1.3 million square feet.
Between Ninth and Tenth avenues and between 31st and 33rd streets, Brookfield has completely decked over the rail yard and is doing site prep for 1 Manhattan West (close to a lease signing with Skadden Arps); and a residential tower has been underway since November.
Source : https://nypost.com/2015/04/06/wework-signs-lease-deal-at-1460-broadway/