Savanna announced it has entered into a lease agreement with Altice USA, Inc. for 103,133 s/f of office space at One Court Square, the office tower in Long Island City owned by Savanna. Terms of the deal were not disclosed.
In addition to the initial lease, Altice USA has an option to lease additional floors within the building to accommodate future expansion. Altice USA has occupied space in One Court Square since 2017.
The news comes after Amazon backed out of its plan to lease the building after longtime tenant Citigroup exits from 1 million square feet late this year.
“Moving to Long Island City has exceeded our expectations, and we’re thrilled to solidify plans to remain in One Court Square for the long term,” said Yossi Benchetrit, Chief Procurement Officer.
“The vibrancy of this neighborhood along with access to the wider pool of talent in the Metropolitan area has been great for our business and our culture. With the continued development of this area and the plans for our workspace and facilities in the building, we’re excited about the environment and opportunities Altice USA is able to offer employees – today and far into the future.”
“Savanna is pleased to complete this major transaction with Altice USA at One Court Square,” said Andrew Kurd, Managing Director at Savanna. “Our significant recent leasing activity further demonstrates the attractiveness of Long Island City, and specifically One Court Square, as a destination for major corporations in today’s market.”
Savanna has made One Court Square’s Class A office space available to the open market for the first time, as the property has been 100% occupied since it was developed and opened in 1989. One Court Square is among the first trophy-quality office offerings to reach the commercial market in Long Island City, after a decade-long wave of large-scale residential development and industrial to office conversions began the transformation of the area.
“It’s easy to see why major tenants from multiple business sectors are drawn to One Court Square. The property offers new construction-quality space with large column-free floorplates of over 33,000 square feet, the most spectacular views in New York City, and the best-in-class live-work environment that New York space users require,” said Brian Reiver, Managing Director at Savanna. “When combined with the stellar location, transportation connections, and 360-degree views, One Court is a compelling proposition.”
Transit connections are many, with a subway station entrance conveniently located within the building offering direct access to the MTA’s E/M/7/G trains. The station offers direct subway service to 53rd and Lexington (2.5 minutes) Grand Central (10 minutes) and Penn Station (14 minutes), as well as other key areas of Manhattan, Brooklyn and Queens.
Savanna is continuing toward completion of a major capital improvement plan for One Court Square, making a significant investment in tenant amenities, building systems, and technical infrastructure. The plan includes the addition of a tenant amenity program centered primarily around the 150,000 square foot retail annex attached to the 53-story office tower. The annex will incorporate 5 levels of food, fitness, and lifestyle elements, along with a new conference center for office tenant use. The annex is being completely redesigned by Gensler, and will feature a showcase, custom designed architectural stairwell interlinking all five levels, and an approximately 17,000 square foot food hall concept.
In the office tower, Savanna is modernizing the lobby and related common areas, and improving building systems. Redevelopment plans include the addition of ground floor retail and related shared spaces to activate the lobby and annex and provide a more dynamic experience for tenants in the building as well as residents and employees in the surrounding neighborhood.
One Court Square tenants can be eligible for multiple as-of-right incentives that reduce the annual cost of occupancy by up to $25 per square foot, with the REAP incentive alone reducing effective rents by up to $20 per square foot per year for tenants relocating from Manhattan or outside of New York.
JLL’s Mitchell Konsker, Matthew Astrachan, Michael Berg, Daniel Turkewitz and Clark Finney, exclusive leasing agents for One Court Square, represented Savanna in the transaction.
“One Court Square has become a destination for tenants seeking trophy-quality space in a location that matches Manhattan neighborhoods in terms of accessibility and amenities,” Mr. Konsker said. “The market now views the property as ‘like-kind’ to many Class A office addresses in Manhattan, particularly as Savanna invests in amenitization and improvements.”