Apple Signs Lease for Employee Lounge at Downtown Brooklyn’s Pioneer Building

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Three tenants have signed or extended leases at the Pioneer Building in Downtown Brooklyn, Commercial Observer has learned. 

Apple signed a long-term lease for a 2,766-square-foot space at 41 Flatbush Avenue, which it will occupy until 2034. The ground-floor space is used as a private lounge for employees at the Apple Store down the block, at 123 Flatbush Avenue. Apple had previously leased the space on a month-to-month basis, according to information from Quinlan Development Group, one of the property’s owners. 

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A second tenant, Shady Grove Fertility, signed a 10-year lease for 7,000 square feet on the fourth floor of 41 Flatbush for its fertility clinic. The practice has locations in seven states, including one in Manhattan. This will be its first location in Brooklyn. 

Finally, Local Locker took 2,831 square feet for its storage lockers for a term of 10 years. 

“The fact that all three tenants signed leases for 10 years and more speaks volumes about their confidence in our building and the future of Brooklyn,” Tim Quinlan, managing principal of Quinlan Development, said in a statement. “It demonstrates great optimism for moving forward at the building.”

George Danut and Ryan Condren of JLL represented the landlords, Quinlan and Building and Land Technology in the retail transactions. Joseph Cirone, Ron Lo Russo, Remy Liebersohn and Anthony Cugini of Cushman & Wakefield represented them in the office deals. 

As for the tenants, Hank O’Donnell of GoodSpace NYC represented Apple; Local Locker was represented by Alex Hedaya of Newmark; and Shady Grove Fertility was represented by Nicholas Zuppas of Gittleson Zuppas Medical Realty.

Starting rents differed for the three tenants, according to Quinlan. Starting rent for Apple’s ground-floor space was $72 per square foot, while Shady Grove’s office space started at $52 per square foot, and Local Locker at $23 per square foot.

The 10-story property, which is also known by the address 80 Rockwell Place, was acquired by the owners in 2015 and converted to office space. Gimlet Media, which Spotify later acquired, signed the first lease at the 270,000-square-foot property in 2017. 

Update: This story has been updated to include the tenant starting rents.