Knotel Nabs 27K SF in Garment District
By Nicholas Rizzi September 16, 2019 12:45 pm
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Flexible-workspace provider Knotel will open another outpost in the Garment District.
Knotel inked a 10-year deal for 27,186 square feet on the entire seventh, eighth and 18th floors of ATCO Properties & Management’s 240 West 35th Street between Seventh and Eighth Avenues, the landlord announced today. Asking rents were in the high $50s per square foot.
The flex office company — which recently reached unicorn status — plans to open its new location in the 18-story building in late fall, a spokeswoman for the landlord said.
(Disclosure: Observer Capital, led by Observer Media Chairman and Publisher Joseph Meyer, is a Knotel investor.)
In March, Knotel signed two leases for a total of 19,974 square feet in the Garment District, as Commercial Observer previously reported. The deal also marks the second lease Knotel has signed with ATCO after it took 17,464 square feet at 373 Park Avenue in 2017, the landlord said.
“We are excited to be expanding our relationship with Knotel at 240 West 35th Street,” Kate Hemmerdinger Goodman, a co-president at ATCO, said in a statement. “Given its recent renovation and convenience of being just two blocks from Penn Station, the building remains an ideal location.”
ATCO bought the 165,000-square-foot 240 West 35th Street for $108 million from RPW Group in 2016 and recently finished renovations to the property that include a new lobby and upgrading the common corridors, as CO previously reported.
The landlord handled the deal in-house via Colin Godwin and John Cinosky while Knotel was represented by Cushman & Wakefield (CWK)’s Douglas Regal, Jamie Katcher and Sebastian Infante. The C&W brokers declined to comment through a spokesman.
