Ratti USA, the American arm of the Milan-based textile company, signed a 10-year lease for a 3,100-square-foot space at 8 West 38th Street for its U.S. headquarters, Commercial Observer has learned.
The fabric manufacturing company will move into its new space on the 11th floor of the 12-story office building between Fifth Avenue and Avenue of the Americas in spring 2016. Asking rent in the deal was $54 per square foot. Ratti USA is relocating from a few blocks away at 8 West 40th Street.
“They wanted to remain in the Garment District while also requiring larger space with a new, dynamic build-out to further elevate their New York presence and upgrade their efficiency,” Handler Real Estate’s Scott Galin, who with colleague Darell Handler brokered the deal for Ratti USA, said in prepared remarks.
Landlord Fraglow Realty is demolishing the space and rebuilding it for Ratti USA with refurbished wood floors, showrooms, a conference room and a pantry. Ronald Zimmerman and Andrew Udis of ABS Partners Real Estate represented the landlord in the transaction.
“There is another Italian textile company in the building that we signed a lease with last year, so I think that was part of the appeal,” Mr. Udis told CO, referring to Zegna Baruffa USA Corporation, which has 1,689 square feet on the 10th floor, CoStar indicates.
Ratti USA will also share the building with LongTail Ad Solutions, which signed a seven-year, 3,602-square-foot expansion lease in the property in March, bringing its total space to 15,352 square feet, as CO previously reported. Marketing agency Axis Promotions, network services provider Transbeam and event planning firm BizBash Media are other tenants in the building.