Deloitte Expands to 95K SF at 330 Hudson Street [Updated]
By Rebecca Baird-Remba March 4, 2019 5:15 pm
reprints
Financial advisory firm Deloitte has subleased another 58,110 square feet at 330 Hudson Street in Hudson Square, growing its presence in the building to nearly 100,000 square feet, Commercial Observer has learned.
The Big Four accounting firm subleased the entire fourth floor and half of the seventh floor in a deal running through September 2028, according to Richard Berzine of Byrnam Wood, who handled both sides of the deal. The new sublease brings Deloitte’s footprint in the 16-story, 418,000-square-foot property to 95,000 square feet, making it the largest tenant in the building. Deloitte originally subleased 40,000 square feet from British educational publisher Pearson in 2016 and then completed two more deals with Pearson in October 2018 and last month. The financial firm uses 330 Hudson as a satellite office to its headquarters at 30 Rockefeller Plaza.
Asking rent in the latest transaction was in the $80s per square foot, Berzine told CO.
Pearson originally leased 308,000 square feet in the office building in 2011. Beacon Capital Partners, which owned the building at the time, decided to double the size of the then-eight-story building and undertake a dramatic renovation of the existing structure and mechanical systems.
“The Faustian bargain [Pearson] struck with Beacon was that we’ll let you rebuild the building on our balance sheet if you let our engineers write the specifications for the HVAC [and electrical] systems,” Berzine explained. “Because we intended to be there not less than 15 years and wanted a building with robust systems and last for at least the term of the lease. Then the building was completed, and we were ready to move in [in 2013], and Pearson changed executives and suddenly didn’t want to move in. And the robust systems we engineered end up benefiting our subtenants.”
Pearson did move into its space, but it slowly vacated and subleased much of it to tenants like Deloitte, John Hardy Jewelers, Concentric Partners, Adtheorent, TED Conferences and The Financial Times Group over the past few years. It finally left the building completely in November 2018.
Ivanhoe Cambridge and Callahan Properties purchased a 49 percent stake in the property in 2014 and exercised an option to take full ownership in 2016, according to The Real Deal. The current owner, AEW Capital Management, bought the former hardware warehouse for $385 million in February 2018, according to property records.
Updated: This post has been updated to reflect the fact that Pearson did move into the building.
