Tishman’s Chelsea Post Office Redevelopment Lands 320K-SF Anchor Tenant
Advertising company Dentsu Aegis Network will anchor Tishman Speyer’s Morgan North development at 341 Ninth Avenue in West Chelsea after signing for 320,000 square feet of office space, the developer announced today.
The subsidiary of Tokyo-based media conglomerate Dentsu inked a 15-year lease for half of the sixth floor and all of the seventh through 10th floors at the 10-story, Art Deco postal facility. The company will also have exclusive use of an eighth-floor terrace and rooftop amenity space, along with access to a shared 2.5-acre roof deck.
The move will allow Dentsu Aegis to consolidate four separate Manhattan offices into a single property. The firm’s subsidiaries include mcgarrybowen, Fetch, 360i, Story Lab, MKTG, Posterscope, Isobar, iProspect and Vizeum.
Nick Brien, the CEO of Dentsu Aegis, said in a statement that the new office “allows for our 24 leading agencies to operate in a more fluid and dynamic environment across the creative, media and experiential marketing space.”
Tishman Speyer, led by exec Rob Speyer, is redeveloping the building’s fifth through 10th floors, plus 5,100 square feet of ground-floor retail. The lower floors will continue to be used as a post office and mail processing facility. Dentsu Aegis will occupy more than half of Tishman Speyer’s 620,000 square feet of planned office space.
Tishman struck a 99-year lease with the U.S. Postal Service for the upper floors last month, according to the New York Post, which also broke the news of the Dentsu lease. Asking rents in the building hover around $120 per square foot, per the Post.
“Barely a month ago, we finalized our commitment to redevelop Morgan North because we saw it as an ideal fit for companies like Dentsu Aegis, which are powered by creative people and their innovative ideas,” Speyer said in a statement. “With its dynamic West Chelsea location, authentic character and unparalleled access to collaborative indoor and outdoor spaces, we knew that 341 Ninth would be a major draw for such forward-looking firms.”
The property, built in the 1930s, occupies the full block between West 29th and West 30th Streets. Construction will begin in late 2020 and finish in 2022.
Cushman & Wakefield’s Richard Bernstein, Adam Ardise and Jared Thal represented the tenant in the transaction, while Tishman handled the deal in-house.