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WeWork closing the gap in office space race

WeWork is on its way to becoming that largest private office tenant in Manhattan.

The co-working behemoth signed a full building 258,344 s/f lease for 368 Ninth Avenue, a 16-story building owned by TH Real Estate, an affiliate of Nuveen (the investment management arm of TIAA).

GRANIT GJONBALAJ

It also took 69,679 s/f off Resnick & Son’s hands at 880 Third Avenue, bringing its total occupancy in the New York market to just over three million s/f, behind only JP Morgan Chase, according to Cushman & Wakefield.

368 Ninth Avenue is 16-story office building, on the southeast corner of Ninth Avenue and West 31st Street near Penn Station, Hudson Yards, and Chelsea.

This is the latest deal that TH Real Estate has completed with WeWork following a partnership on London office building earlier this year, Devonshire Square.

“TH Real Estate purchased this property with the intention of redeveloping a underutilized asset into a Class A asset with amenities,” said Nadir Settles, managing director, Sr. Regional Head, NY Office Investments at TH Real Estate.

“WeWork’s creative concept attracts high level tenants, and we look forward to extending our relationship with them through this lease.”
Granit Gjonbalaj, Chief Development Officer, WeWork, said, “In recent years, we have worked with TH Real Estate on a number of projects in and outside of the US, best signified by our partnership on Devonshire Square in London. “The lease agreement signed today for 21 Penn Plaza [aka 368 Ninth] will further enhance our excellent relationship.

“We are tremendously excited about bringing the WeWork community to this area, which is increasingly attracting some of the country’s leading companies, and quickly transforming into one of New York’s leading business hubs.”

Meanwhile, WeWork has signed a 15-year lease at 880 Third Avenue, bringing the 18-story Plaza District boutique office tower to full occupancy.
The 69,679 s/f lease, which spans seven full floors, will start this summer and includes office space on floors 5-6 and 9-13. WeWork’s space will feature two outdoor terraces on the 12th floor.

“We are pleased to welcome WeWork to 880 Third Avenue, which is now fully leased thanks to our talented team of brokers and real estate attorneys,” said Jonathan Resnick, president of Jack Resnick & Sons, in a press release announcing the lease.

“We’re confident WeWork and its clients will benefit from our building’s outstanding location, first-rate infrastructure, and quality service.” Jack Resnick & Sons was represented by an in-house leasing team of Brett Greenberg and Fran Delgorio, an in-house legal team of Kalpana Gajjar and Thomas Ruggiero, and Meyer Last of Fried, Frank, Harris, Shriver & Jacobson LLP.

WeWork was represented by the leasing team of Ken Ruderman and Andrew Zang of Savills Studley, in-house leasing agent David Sadkin, and in-house general counsel Mathew Brandt, along with a Kasowitz, Benson Torres, LLP team led by Adam M. Endick and Steven J. Shafer. Asking rents at the property are in the $65 psf range.

Ken Ruderman, Savills Studley Vice Chairman and Co-Branch Manager, said, “We were thrilled to have been involved in this creative transaction,.

“The collaboration of numerous skilled professionals is the reason the deal got done, and it allowed our client to establish a relationship with Jack Resnick & Sons, one of the city’s benchmark owners/builders.”

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