NEW YORK CITY-WeWork, the collaborative work space provider, has entered into a 15-year, 63,300-square-foot lease at 401 Park Ave. South, bringing the company up to a dozen locations around town. Asking rents in the building—where the firm will lease floors eight through 10—are currently $62 per square foot.
The 250,000-square-foot, 12-story office building, on the southeast corner of east 28th street and Park Avenue South, is in Midtown South, which likely will allow it draw heavily on the technology, advertising and media industries, which have made the area their hub. The building is owned by Meringoff Properties.
“We knew WeWork was on to something unique and special after meeting with Adam Neumann, co-founder of We Work, one year ago,” says Stephen Meringoff, partner at Meringoff Properties. “Having toured a number of their locations, and understanding what they have on the horizon, we all recognized that 401 Park Avenue South would be an ideal location for their business since the neighborhood has become the axis of New York's burgeoning technology and creative industries.”
“WeWork has been actively searching for the right opportunity for our business in Midtown South; after touring 401 Park Avenue South we immediately knew we had found it,” adds Mark Lapidus, director of real estate at WeWork. “The high ceilings, efficient wide-open floors, and great natural light fit exactly the aesthetic we were looking for and will enable us to create the culture that defines the WeWork brand.”
VPs Derrick Ades, Barry Finkelman and Patrick Nelson, senior associate of CBRE along with Mark Lapidus of WeWork represented the tenant in the transaction, while Farrell Virga, president, Mark Stein, SVP and director of leasing and Jason Vacker, VP, acted in-house on behalf of ownership.
This transaction, in addition to recently completed leases with xAd, a mobile location-based ad platform, and Vitech Systems, a provider of administration software to pension, investment, insurance and health plan administrators, brings 401 Park Avenue South to 92% leased, having completed nearly 130,000 square feet of leasing at the property this year. The entire fifth floor, measuring 21,100 square feet, is the last availability at the property and the Meringoff team says it expects to announce a new lease for that space early in 2014.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
