WeWork Takes 60K SF at L&L, PGIM’s Ironworks Complex in Chelsea
By Rey Mashayekhi September 25, 2018 6:25 pm
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On the heels of declaring itself New York City’s largest office tenant, coworking giant WeWork inked a lease for nearly 60,000 square feet at 511 West 25th Street in Chelsea, the company confirmed to Commercial Observer.
WeWork has agreed to take floors two through nine at the nine-story, 93,000-square-foot building between 10th and 11th Avenues, The Real Deal reported late last week. The property is part of the three-building, roughly 200,000-square-foot Ironworks complex at 511-541 West 25th Street, which is jointly owned by L&L Holding Company and PGIM Real Estate.
Granit Gjonbalaj, WeWork’s chief development officer, said the Ironworks lease was signed “in response to continued demand” for office space on the West Side of Manhattan—particularly the areas of “upper Chelsea” located near Hudson Yards.
“This new location will allow us to grow our community in an area that is increasingly attracting some of the country’s leading companies and quickly transforming into one of New York’s leading business hubs,” Gjonbalaj said in a statement to CO.
Asking rent in the deal and the length of WeWork’s lease could not be confirmed. A Newmark (NMRK) Knight Frank team of David Falk, Alex Leopold, Matthew Siegel and Jason Greenstein handle leasing at the Ironworks complex, according to L&L’s website. It was not immediately clear whether WeWork had outside broker representation. Representatives for NKF could not immediately be reached for comment.
Last week, it emerged that WeWork was laying claim to having surpassed J.P. Morgan Chase as the largest office tenant in the city. In a blog post, Gjonbalaj wrote that the coworking firm now had roughly 5.3 million square feet of space under lease across 60 locations in the five boroughs (including 50 in Manhattan).
L&L and PGIM acquired the Ironworks complex, which is located adjacent to the High Line, from previous owner Related Companies for $160 million in 2014. Office tenants at the property include department store retailer Target and public relations firm BPCM.
