ATCO Properties & Management announced that agile workspace provider Knotel has signed a 27,186 s/f lease at 240 West 35th Street, an 18-story, 165,000 s/fclass A office building in the Garment District.
Knotel’s new space encompasses the entire 7th, 8th and 18th floors of the property, which is located between 7th and 8th Avenues. The company – which designs, builds, and operates custom spaces for companies of 50 employees or more – will open its new 240 West 35th Street locations in late fall 2019.
As part of the transaction, Knotel will receive multiple build-outs from ATCO’s in-house contractor, Essential Design + Build.
The spaces will feature open, collaborative areas, user friendly meeting rooms and ADA compliant bathrooms.
The deal is the second lease completed by Knotel in the ATCO portfolio in recent years. In 2017, the flexible office provider signed a 17,464 s/f lease at 373 Park Avenue South in the Flatiron District.
“We are excited to be expanding our relationship with Knotel at 240 West 35th Street,” said Kate Hemmerdinger Goodman, co-president at ATCO Properties & Management.
“Given its recent renovation and convenience of being just two blocks from Penn Station, the building remains an ideal location.”
Colin Godwin and John Cinosky of Atco Brokerage Services represented building ownership in the long-term transaction.
Douglas Regal, Jamie Katcher, and Sebastian Infante of Cushman & Wakefield represented Knotel. Asking rents were in the upper $50s psf.
240 West 35th Street has a renovated lobby and common corridors, new elevators and restrooms. Major tenants include Newsday; luxury goods company Diptyque; men’s fashion and eyewear designer Thom Browne; and bridal designer Reem Bridals.
Retail tenants include restaurant chain Café Metro and Café Nunez.