The move comes after a recent acquisition of one of the largest Medicaid managed care companies in New York, Health Plus, and the desire to consolidate their multiple offices.
Amerigroup currently occupies a 50,000 square foot office at 21 Penn Plaza and two facilities in Brooklyn. The new lease, set to start at turn of the new year, will occupy the 11th, 12th, 14th, 21st, and 22nd floors in 14 Wall Street.
“We engaged in a lengthy process to identify a building that was geographically optimal for consolidation of the former HealthPlus and Amerigroup offices,” said Zev Holzman, corporate managing director at Studley and broker on the deal, in a prepared statement. “Ultimately, 14 Wall Street, across from the stock exchange, proved to be ideal location and provided excellent growth opportunities and flexibility over the long-term.”
Mr. Holzman was joined by his colleague Paul Revson, an executive managing director at Studley, and Rich Hopen of Hopen Corporate Services in representing the tenant.
A leasing team from CBRE consisting of Howard Fiddle, Brad Gerla, Jonathan Cope and Evan Haskell worked alongside the owners Josh Zamir and Daniel Ghadamian of Capstone Equities and Alex Rovt.
Mr. Rovt acquired majority stake in the building for $303 million in cash earlier this year. The one million square foot office building, owned by a joint venture between Capstone Equities and the Carlyle Group, was under financial stress and Mr. Rovt settled the debts with the creditors. The Carlyle Group now holds no ownership with Capstone Equities maintaining a small management role.
The deal was finalized with 300,000 square feet left unoccupied but leasing efforts have closed the gap to less than 70,000 available square feet, including this deal.