NEW YORK CITY-As interest in the Lower Manhattan market continues to grow, owner/manager Stellar Management has executed a 25,462-square-foot lease at 2 Rector Street with non-profit organization Ithaka--and is currently in the process of negotiating over 30,000 square feet of new leases to be announced shortly, GlobeSt.com has learned.
Details about the new deals cannot be disclosed due to ongoing negotiations, says Adam Roman, COO of Stellar Management, but tells GlobeSt.com he is noticing “demand for Downtown in general” over the last two months. “Obviously with rents increasing in Midtown, Downtown has seen an increase in rents, but there is still a difference,” he says. With only 85,000 square feet left inside the 26-story, 430,000-square-foot ‘U-shaped’ building, asking rents for pre-built space at 2 Rector start at $37 per square foot, and Roman expects them to continue to rise. “It’s still a good value.”
Ithaka, the building’s new tenant, relocated and expanded from the Flatiron District in Midtown South and will occupy the entire 18th floor and part of the 17th floor here. The lease comes shortly after Stellar Management completed a capital improvement plan and implemented a pre-built program at the Pre-War building, which includes high-end suites, architecture services and custom build-out to suit tenant’s individual needs.
The tenant, an organization that helps the academic community with digital technology, was attracted to 2 Rector Street due to its accessibility to transit Roman says. The building is near the World Trade Center PATH, commuter buses on Trinity Place and various subway lines.
The structure is also home to a diversity of tenants, which ranges from architectural firms, financial services companies and other professional services. Daniel Libeskind, Skanska, Bank of America Merrill Lynch and Morris Duffy Alonso & Faley are all located here. “Being that Ithaka is a non-profit, they have that other component to them, which again, is unique compared to your traditional financial services sector,” Roman says.
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