IBI Group, an international architecture and engineering firm, signed a four-year, 8,709-square-foot lease to relocate into the entire 21st floor of 44 Wall Street, Commercial Observer has learned.
Last week the company moved from its space at 320 West 13th Street in the Meatpacking District into its new home in the 24-story Financial District building between William and Nassau Streets.
Taking rent in the deal was $39 per square foot for the first three years and then $40 per square foot in the final year, according to Keith Lipstein of ABS Partners Real Estate, which handles leasing and management of the 342,000-square-foot office building. Mr. Lipstein, along with colleagues Jay Kreisberg, Joe D’Apice and Gregg Schenker represented the landlord, a Scandinavian-based investment trust that functions under the name 44 Wall Owner LLC.
“We like the use. I think an architectural firm presents well for the building,” Mr. Lipstein told CO. “The deal was a great deal for the landlord because they didn’t have to spend a lot of money to get them in.”
Matthew Fisher and Yarden Drimmer of Cushman & Wakefield represented the tenant in the deal. Messrs. Fisher and Drimmer did not return a request for comment.
Beginning in 2012, the landlord spent $8 million to renovate and upgrade the building. During the renovation phase the owner subdivided three vacant floors—the sixth, seventh and ninth—into five pre-built office units on each level. There are new glass-enclosed offices with polished concrete and hardwood floors on those levels. The 15 new units range between 2,000 and 5,000 square feet.
“We first began implementing this concept in the building on the seventh floor in 2012,” Mr. Lipstein said. “After that first round of build-outs, we quickly learned there was a huge demand for contemporary, open office suites under 5,000 square feet in the Downtown area.”
The sixth floor was the latest to be completed in April, and the ABS Partners team recently completed deals for units on that floor in July. West Wing Writers, a speech writing and media strategy firm, signed a three-year deal for a 3,005-square-foot space on that floor. Also, Portigon Financial Services inked a three-year lease for a 3,204-square-foot space. The taking rent in both of those deals was $42 per square foot.
Other tenants in the building include law firm Cullen and Dykman, which occupies the entire 14th, 15th, 17th and 19th floors for a total of 54,000 square feet. Also, TitleVest, a title services company, leases 32,000 square feet on the entire eighth and 10 floors. And Prime Office Centers, which rents office suites to individuals and businesses, has about 32,000 square feet between the 12th and 13th floors.