Tiffany & Co. Takes Full Floor at Flatiron District Office Building
By Rey Mashayekhi September 11, 2017 3:00 pmreprints
Jewelry and luxury goods retailer Tiffany & Co. is expanding its corporate office footprint after agreeing to take nearly 17,000 square feet of space at 53 West 23rd Street in the Flatiron District, Commercial Observer has learned.
Tiffany signed a long-term, 16,909-square-foot deal to take the entire seventh floor at the 12-story, 274,000-square-foot property between Fifth Avenue and Avenue of the Americas—one of three interconnected office buildings on the block owned by landlord Twenty Three R.P. Associates.
Asking rent in the Tiffany lease was $66 per square foot, according to a press release from brokerage Adams & Co., which represented the landlord in the deal. Greg Taubin of Savills Studley handled negotiations on behalf of Tiffany.
The new space will serve as an addition to Tiffany’s corporate space at nearby 200 Fifth Avenue, located just around the corner on the same block, and will accommodate offices for company executives, designers and administrative employees. Tiffany is slated to move into the space this fall. A spokeswoman for Adams declined to provide the exact length of lease.
“The vast amount of nearby transit options will make it easy for Tiffany’s employees to travel up to its flagship store on Fifth Avenue and 57th Street,” Adams & Co.’s Jim Buslik, who represented the landlord along with colleagues Alan Bonett and Bradley Cohn, said in a statement. He added that the company’s corporate offices at 200 Fifth Avenue are “only a short walk away.”
Adams also announced three other leases at the 411,000-square-foot Flatiron District office complex, including a 16,909-square-foot renewal for 4K Media, a subsidiary of Japanese entertainment company Konami.
The long-term deal saw 4K Media take the entire 16,909-square-foot 11th floor at 53 West 23rd Street as well as 5,594 square feet comprising the entire 11th floor of the interconnected 49 West 23rd Street, a 65,500-square-foot building. Asking rent in the transaction was also $66 per square foot, with 4K Media housing its production facilities at the offices. The tenant was represented by Joel Wechsler and Nate Katz of CBRE (CBRE).
In a new deal at the property, digital marketing firm 3Q Digital signed a 5,625-square-foot lease for the entire 10th floor at the 71,000-square-foot 30 West 24th Street. Asking rent in the deal was $60 per square foot, with 3Q Digital having already moved into the prebuilt space from its previous offices at 215 Park Avenue South near Union Square.
“The tenant quickly outgrew their space at 215 PAS, doubling in size,” Newmark (NMRK) Knight Frank’s Daniel Katcher, who represented 3Q in the transaction, said in a statement. “The creative-style prebuilt space at 30 West 24th Street, with a few tweaks to the layout, was the perfect solution.” Katcher added that the office’s location and proximity to Madison Square Park “was also key” in the tenant’s choice.
Lastly, Ability Insurance Co. and its parent firm, Advantage Capital Holdings, signed a new 5,594-square-foot lease for the entire eighth floor at 49 West 23rd Street. Asking rent in that deal was $62 per square foot, with the tenant represented by Dennis Someck and Justin Myers of Lee & Associates NYC.
In the press release, Adams & Co.’s Buslik said all of the new tenants were drawn to the West 23rd Street properties’ “superb location” as well as capital improvements including “a newly renovated lobby, modernized elevators and an updated state-of-the-art security system.”
“The updates the landlord made at these buildings attracted Tiffany & Co. and 4K Media and also helped lease a total of 120,000 square feet at the properties over the past 12 months,” Buslik said.
Major tenants at the office complex include concert promoter AEG Live, investment adviser Betterment Holdings and office products supplier W.B. Mason.