Flatiron Health and E-Cigarette Startup Juul Take Space at One Soho Square
Flatiron Health, which focuses on cancer research, signed a 10-year lease for another 122,068 square feet in the 13-story west tower of Stellar Management and Imperium Capital’s One Soho Square, which has an alternate address of 233 Spring Street, Bloomberg first reported.
The renewal and expansion brings Flatiron’s presence in the development to 252,452 square feet over nine full floors of the two-building development between Spring and Vandam Streets, according to the landlord. Asking rent was $102 per square foot, a source with knowledge of the deal said.
Flatiron, which was founded in 2012, first moved into its 130,384-square-foot offices in One Soho Square’s 15-story east tower—which has an alternate address of 161 Avenue of the Americas—in January 2018, as Commercial Observer previously reported.
The firm’s team has since grown from 500 to 800 employees after it was bought by Swiss pharmaceutical company Roche for $1.9 billion last year, according to the tenant’s broker Savills.
Savills’ Zev Holzman, Brad Wolk and Herman Dodson brokered the deal for Flatiron while Brent Ozarowski, David Malawer, Andy Peretz and Brian Waterman of Newmark (NMRK) Knight Frank represented the landlords. The NKF brokers declined to comment.
“Finding large blocks of space in Soho [and] Hudson Square is nearly impossible because the area is in high demand,” Holzman said in a statement. “Through careful planning and diligence, we were able to identify the only large block expansion opportunity in the neighborhood and craft a transaction that will deliver space on the tenant’s timeline and meet Flatiron’s needs for years to come.”
Separately, e-cigarette juggernaut Juul inked a deal for 54,000 square feet in the west tower of One Soho Square, The Real Deal first reported.
Juul signed a long-term lease for the eighth and ninth floor of the west tower of One Soho Square, sources said. Asking rent was $124 per square foot, according to the sources.
Colliers (CIGI) International’s Eric Ferriello handled the deal for Juul while NKF’s Malawer, Peretz and Waterman represented the landlords. A spokesman for Colliers declined to comment.
E-cigarette maker Juul currently has about 75 percent of the vaping market, but has come under fire for its early advertisement campaigns critics said targeted teenagers, The Wall Street Journal reported. The company denied it was trying to appeal to teens.
Despite the criticism, Juul had its valuation increase to more than $38 billion in May when mutual fund Capital Re bought shares on the secondary market, The New York Post reported. And even as San Francisco gears up to be the first city in the country to ban vaping, Juul bought a 28-story office tower there this week for an estimated $400 million, the San Francisco Chronicle reported.
The two leases come less than a month after Stellar and Imperium sealed a $900 million refinance of One Soho Square, as CO previously reported.