Shared Office Provider Spaces Inks 31K-SF Deal for First Brooklyn Digs
Spaces, a flexible workspace provider and a subsidiary of IWG, signed a 30,716-square-foot lease on Monday at 41 Flatbush Avenue, which is also known as the Pioneer Building, in Downtown Brooklyn, Commercial Observer has learned.
It will be Spaces’ first location in Kings County. The company’s 15-year lease covers the entire 26,908-square-foot second floor of the 10-story building between Livingston Street and Lafayette Avenue, according to information landlords Quinlan Development Group and Building and Land Technology provided to CO. In addition, Spaces will take 3,808 square feet on part of the ground floor, which features a 38-ton, 100-year-old bank vault. The asking rent in the deal was in the low $60s per square foot.
“Our rapid expansion within New York City and its surrounding boroughs reflects our commitment to small business owners,” Michael Berretta, a vice president at IWG (formerly known as Regus), said in a prepared statement. “Our newest location in Brooklyn has been designed specifically to foster connections between smaller firms and more established companies and provide an environment to grow and thrive.”
A Cushman & Wakefield (CWK) team led by Bruce Mosler, Joseph Cirone, Patrick Dugan and Ron Lo Russo, handled the deal for Quinlan Development and Building and Land Technology. CBRE (CBRE)’s Mark Ravesloot and Scott Sloves handled the deal for Spaces.
In Manhattan, Spaces has an active location at 1740 Broadway in the Financial District, and two locations set to open later this year at 230 Park Avenue and in the Hudson Yards District at 424-434 West 33rd Street. The company also has an active outlet in Long Island City, Queens at 31-00 47th Avenue. And Spaces is taking over the Regus lease at the Lighthouse Point development in Staten Island, as The Real Deal reported in February.
TRD first reported that Spaces was negotiating a lease for space at 41 Flatbush.
Quinlan Development and Building and Land Technology purchased 41 Flatbush in 2015 for $90 million, as CO previously reported. Last April the partners secured $132.3 million in refinancing for the property.
The developers then pumped $50 million into a renovation of the 270,000-square-foot property, which included landscaping a rooftop terrace, creating a new lobby, new windows, installing a new tenant-controlled heating, ventilation and air conditioning system, indoor bike parking and new elevator cabs.
“This property offers efficient floor plans and brand-new amenities, all in a prime location with unmatched access to transportation and proximity to all that Brooklyn and Manhattan have to offer,” Tyler Wilkins, a partner at Quinlan Development, said in prepared remarks.
Digital media and podcast firm Gimlet Media completed a 10-year, 27,000-square-foot lease at 41 Flatbush Avenue last year, as CO reported at the time. Retail tenants that have signed deals for space at the building include Blick Art Supply, Coffee Project, The UPS Store and Smoothie King.