NEW YORK CITY-In what's being dubbed an "under the radar screen" transaction, global media giant Publicis Groupe has signed a lease to occupy nearly 114,000 square feet at One Penn Plaza. The company is expected to take occupancy this April.
Studley EVP and co-branch manager Ken Ruderman and senior managing director Brad Wolk led the deal, which was initially crafted as a sublease between the tenant representation firm's client, Direct Brands, and the global media conglomerate. As the deal gained momentum however, building owner Vornado Realty Trust helped cement the transaction by ultimately concluding the transaction as a mutually beneficial assignment of lease. Asking rents were in the $50's per square foot.
"A transaction of this caliber, with such dynamic complexity, could not have been accomplished without the business savvy and financial acumen of many, so it was a true team effort of many professionals with a common goal," Ruderman says. "The deal was signed within 35 days of our client vacating their space and relocating to their new offices. Given the size of this transaction, it's an outstanding achievement."
Just after the first of the year, Direct Brands relocated its operations to almost 30,000 square feet at 2 Park Ave in another deal negotiated by Ruderman, along with Studley assistant directors Gabriel Marans and Peter Cipriano.
The move-in ready, fully furnished space at One Penn Plaza comprised the entire fifth floor, and a portion of the fourth, and offers direct access to Penn Station. The duplex opportunity was considered the most desirable work space of its size on the market, according to Studley.
Studley negotiated a balance of all financial components to create equally favorable terms for all three parties. The mid-term sublease opportunity had to compete with the long-term direct opportunities large scale tenants look for, which come with the typical concession package of free rent and large cash allowances for tenant improvements, the firm reports.
It was unclear at press time whether the move by Publicis is related to its 2013 merger with Omnicom. Ruderman declined to further comment. Publicis did not return a request for comment by press time.
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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.
