Handbag and accessory designer, Rebecca Minkoff, has leased 13,000 square feet of office and showroom space on the 7th floor of 16 West 22nd Street, a 12-story building in Midtown South. Asking price was $38 per square foot in the 10-year deal, which closed last week.
The transaction represents a relocation and consolidation of the designer’s two offices in neighboring locations. “This is a very exciting and growing brand and their looking to consolidate two offices in the immediate area of where they ended up,” said Alan Wildes, executive director with Cushman & Wakefield, who, along with director Ethan Silverstein, represented the tenant.
The tenant and brokers searched primarily in Chelsea for about six months before finding the current spot. Leasing options were limited in what is the most in-demand neighborhood in Manhattan. “There weren’t that many quality opportunities in their size range,” said Mr. Wildes.
The landlord, Meysar Realty Group, represented by Newmark Grubb Knight Frank managing director, Barbara Yagoda, provided a light build-out, including an office and showroom. “They wanted to have their entire operation on one floor,” Mr. Wildes said.
Rebecca Minkoff is the latest in a string of tenants to sign leases in the former printer building of renovated loft space, Ms. Yagoda said. Within the last three months, she has placed digital design studio, Click 3X, in 13,000 square feet of expanded space; web app designer, Irridesco, into 13,000 square feet on the eighth floor; online trading developer, Walleye Trading Advisers, into 13,000 feet after moving from midtown; engineering firm, Sims Group USA, took 13,000 square feet after outgrowing a space in the neighborhood; and Naked NY, a communications firm, took 13,000 square feet after moving from Soho.
The only floor left vacant at 16 West 22nd Street is the six floor and Ms. Yagoda believes a suitable asking price for space there would be in the low $40s as the building has large, open spaces; is near to both Fifth Avenue and Avenue of the Americas; there is a restaurant in the building; transportation is nearby and the neighborhood, in general, is in demand.
“It’s the hottest market in New York City.”
Potential tenants are circling, Ms. Yagoda said. “There’s a lot of interest,” she said. “I’m showing it a lot.”