Capital New York Moving Downstairs on 39th Street [Updated]
Online news publication Capital New York is moving to a larger space in its current building at 333 West 39th Street to accommodate its recent growth.
Capital signed a five-year lease for 4,500 square feet one floor down from its current 1,900-square-foot ninth-floor space in the building between Eighth and Ninth Avenues, according to Neil Joffee of Newmark Grubb Knight Frank. Mr. Joffee is the majority owner of the building and was one of the brokers representing ownership, along with NGKF’s Alan Steinberg. The new office is comprised of three combined spaces on the eighth floor.
The deal was first reported by the Capital Real Estate newsletter early this morning.
Since Politico’s publisher, Robert Allbritton, purchased Capital last year, the publication has grown exponentially.
“Prior to the acquisition in September 2013, Capital had seven employees,” said Katherine Lehr, vice president of operations at Capital. “We’re now over 40 employees, with about 35 based in Manhattan.”
Capital has employees in Albany, and sister publication Politico is in the Washington, D.C. area.
“We assisted Capital [in securing] an off-market relocation and expansion opportunity within the building to accommodate their recent and continued growth plans,” said Zachary Price of CBRE, who represented Capital in the transaction along with Ben Friedland.
Mr. Joffee added: “They wanted to expand in the building. This space was becoming available. It never came on the market. We would have asked in the low-$40s for it.”
Mark David Interiors is the previous occupant of Capital’s new space. Mr. Joffee said the textile company wanted to move out at the same time Capital wanted a bigger space in the building. “We arranged for an early termination and cancellation of the lease,” Mr. Joffee said.
Capital is expected to move in around Sept. 1. The date will “be determined by how fast we can complete the space,” Mr. Joffee said. “This space was really not a developed space. It’s one of the last spaces that hadn’t been upgraded in years.”
Update: This story was edited to include a remark from the vice president of operations at Capital New York.