WeWork Nabs More Space at 2 Herald Square
By Nicholas Rizzi November 26, 2018 3:46 pm
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Coworking giant WeWork has beefed up its presence in SL Green Realty Corp.’s 2 Herald Square by taking another 60,000 square feet in the Garment District building, the company announced Monday.
The company inked a deal for the fifth and sixth floors of the 11-story building between West 34th and West 35th Streets for a WeWork to open in 2020, a spokesman for WeWork said.
A spokesman for WeWork would not provide terms of the deal and it’s unclear if there were any brokers, but asking rents in the building average between $62 and $75 per square foot, according to CoStar (CSGP) Group data. An SL Green (SLG) spokesman did not immediately respond to a request for comment.
WeWork first signed an 18-year lease for 124,000 square feet at 2 Herald Square in 2016 amidst a legal battle between former owners—and brothers—Eddie Sitt, Ralph Sitt and David Sitt, as Commercial Observer previously reported.
Eddie Sitt accused Ralph and David Sitt of “looting tens of millions of dollars” from the family-owned Sitt Asset Management while Ralph sued Eddie and Ralph Sitt of “usurping control” of the company and 2 Herald Square.
Sitt Asset Management sold 2 Herald Square to SL Green in 2017 and the brothers settled their lawsuits earlier this year.
“We have an excellent relationship with SL Green and look forward to continuing our work with them to make this building a leading hub for companies wanting to be based in the area,” Granit Gjonbalaj, WeWork’s chief real estate development officer, said in a statement.
Other tenants in the 362,191-square-foot 2 Herald Square include Victoria’s Secret, Mercy College and public relations firm Publicis.
