WebMD Leaves 111 Eighth Avenue, Following Deal With Google
Health information provider WebMD is leaving Google’s home at 111 Eighth Avenue, as reported by Crain’s New York Business, following an agreement for an undisclosed sum with the online search company.
As part of a nine-year sublet agreement with Kaplan Test Prep, WebMD will move to the test prep company’s 150,000-square-foot space at 395 Hudson Street, following a renovation.
WebMD’s 100,000-square-foot lease at Taconic Investment Partners‘ 111 Eighth Avenue was expiring, a source familiar with the deal told Commercial Observer, who noted the similarity of the buildings and neighborhoods (read: hip). The company had a five-year renewal option but ultimately decided it was better to relocate now instead of later. Surely Kaplan’s offer held sway: it will pay for the construction of a state-of-the-art office and recoup the amount over the life of the sublease by charging a slightly higher rent than the original asking price of the $50s per square foot, according to Crain’s.
Scott Panzer and Steven Rotter of JLL represented Kaplan in the transaction. The brokers did not immediately respond to requests for comment. Kyle Ciminelli and David Falk of Newmark Grubb Knight Frank represented WebMD. Mr. Ciminelli declined to comment.
The sublease at 395 Hudson Street has an extension option for at least five years directly with the building’s landlord, the New York City District Council of Carpenters Benefit Funds, according to Crain’s. Kaplan, which occupies the third and fourth floors, will move to 750 Third Avenue in the summer.