Peloton Inks 312K-SF Lease to Anchor Cove’s Hudson Commons Office Project
By Rey Mashayekhi November 19, 2018 2:25 pm
reprints
Peloton is moving its corporate headquarters to Hudson Commons after agreeing to take 312,000 square feet of office space at the Cove Property Group-helmed redevelopment on the Far West Side, the fitness startup announced today.
The cycling equipment and technology company will anchor the redeveloped 25-story, 700,000-square-foot office building at 441 Ninth Avenue, where Cove is building a 17-story addition to the existing eight-story, 423,000-square-foot building between West 34th and West 35th Streets.
Peloton will occupy the fourth through 10th floors at the property, as well as a 13,000-square-foot basement space, beginning in 2020. The company’s new headquarters will be six times larger than its current digs in Chelsea, where it occupies around 50,000 square feet at 125 West 25th Street, and will be located only a few blocks from its new 35,0000-square-foot flagship broadcast and production space, known as Peloton Studios, at Brookfield Property Partners’ 5 Manhattan West.
“New York City is where Peloton started, and it will continue to be our home as we scale our business globally,” Peloton co-Founder and CEO John Foley said in a statement. “For a long time, New York was considered to be an afterthought for tech startups, but it’s now the second-highest performing startup ecosystem in the world.” Foley added that the city offers Peloton with “the best talent” across the brand’s three intersecting industries of fitness, technology and media.
Cove co-Founder and Managing Partner Kevin Hoo described Peloton as “a fantastic match” for the Hudson Commons project, which Cove financed with a $479 million construction loan from Apollo Global Management (APO), as Commercial Observer first reported last year. “Hudson Commons was conceived with creativity and entrepreneurialism in mind—offering unique, well thought-out space to foster the best working environment for the talent of this generation,” Hoo said in a statement.
Asking rent and the length of Peloton’s lease were not immediately clear. Benjamin Birnbaum and Ben Shapiro of Newmark (NMRK) Knight Frank represented the tenant in the transaction, while a CBRE (CBRE) team of Stephen Siegel, Evan Haskell, Paul Haskin, James Ackerson and Benjamin Joseph represented the landlord. Representatives for NKF and CBRE did not immediately provide comment.
The Real Deal first reported that Peloton was in talks for space at Hudson Commons earlier this month.
