Lease Beat

AppNexus Extends, Expands to Total 220,000 Square Feet at 28-40 West 23rd Street

AppNexus signed a 10-year lease extension and expansion that will give the advertising technology platform a 220,000-square-foot footprint at 28-40 West 23rd Street.

The company’s latest lease for 220,000 square feet–130,000 square feet of it an expansion–in the Flatiron District tower comes nine months after a 24,500-square-foot expansion. AppNexus arrived at the 600,000-square-foot tower about three years ago, initially signing for 24,500 square feet.

Mark Weiss and Rob Eisenberg of Newmark Grubb Knight Frank represented the tenant. Michael Cohen and Andrew Roos of Colliers International, who are both part owners of the building, represented the landlords.

AppNexus's existing office on the fifth floor of 28-40 West 23rd Street.

AppNexus’s existing office on the fifth floor of 28-40 West 23rd Street.

Last year, The Commercial Observer wrote about the property, which is a combination of two buildings, and its anchor tenant, Ecko, which nearly went bankrupt during the recession. Ecko at one time leased 270,000 square feet between the second and sixth floors. With its latest expansion, AppNexus will take over the entire second floor and parts of the fifth and sixth floors.

“The landlord made a thoughtful deal that was compelling enough for AppNexus to commit to the building long term,” Mr. Weiss said. He added that asking rents were in the high $50 per square foot range.

The tenant plans to move into the new space in the third quarter.

“The neighborhood speaks for itself,” Mr. Weiss said. “It’s vibrant. The building also speaks for itself, with large, open floors and high ceilings lending themselves to creative planning and an exciting environment.”

Follow Billy Gray on Twitter or via RSS. bgray@observer.com