Businessman and rapper Jay Z may have 99 problems but too much office space is no longer one of them.
Jay Z is relocating the offices of his 40/40 Club within a Garment Center building, and the new digs are much smaller, Commercial Observer has learned.
“They moved in many years back,” said Benjamin Stavrach, the in-house director of leasing and property management for landlord Triangle Assets. “They don’t need so much space.” Mr. Starch negotiated the deal for both sides.
Jay Z, who opened the 40/40 Club at 6 West 25th Street in 2003, signed a five-year deal for 1,500 square feet on the 10th floor of the 15-story 255 West 36th Street between Seventh and Eighth Avenues. The asking rent was $45 per square foot. Jay Z established offices in 4,000 square feet on the 15th floor in mid-2011.
“They have been loyal to us because of our strategic pricing in the market and our constant effort to upgrade the building,” Mr. Stavrach said.
The 125,000-square-foot building has been, on average, 98 percent occupied since 2003.
“When purchased [in 2001], the building was 70 percent vacant and the remaining 30 percent was filled with factories,” Mr. Stavrach said. “My father, Joseph Stavrach, along with his partner, Fredy Srour, repositioned the building by renovating the lobbies and elevators. They then filled the building to 100 percent occupancy with office and showroom tenants within 12 months.”