Verizon Leaves Namesake Building for 143K-SF Digs at Essex Crossing

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Verizon inked a deal to open a 143,000-square-foot office at the new Essex Crossing development on the Lower East Side to move staff from its longtime home at The Verizon Building at 140 West Street in Lower Manhattan, the New York Post reported.

The telecommunications firm signed a 20-year lease for space on the third through fifth floors in Essex Crossing’s mixed-use tower at 155 Delancey Street between Clinton and Suffolk streets, a source with knowledge of the deal and a spokesperson for the landlords confirmed.

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Asking rents range from $80 to more than $130 a square foot in the property owned by Taconic Partners, L+M Development Partners, BFC Partners, Goldman SachsUrban Investment Group and The Prusik Group, according to the Post.

The deal will take Verizon staffers away from its Downtown headquarters at 140 West Street, an office and residential building, after nearly two decades.

Verizon first moved into the West Street property in 2005, after it sold the majority of 1095 Avenue of the Americas for $505 million, as Commercial Observer previously reported. 

It sold a portion of 140 West Street to Magnum Real Estate Group in 2013 for $274 million and moved its New York headquarters back to 1095 Avenue of the Americas that year, as CO reported. Verizon kept 60 percent of the West Street building for its switching equipment and administrative offices.

Verizon will still keep its offices at 1095 Avenue of the Americas and 565,800 square feet at 140 West Street for its switching equipment since some of it can’t be moved, per the Post.

As part of the Essex Crossing deal, Verizon has an option to take the entire 350,000-square-foot office portion of 155 Delancey and 145 Delancey Street, the Post reported.

Cushman & Wakefield’s Josh Kuriloff, Andrew Braver and Peyton Horn represented Verizon in the deal. It’s unclear who handled it for landlords.

A spokesperson for C&W declined to comment and a representative for the landlords did not immediately respond to a request for comment.

Nicholas Rizzi can be reached at nrizzi@commercialobserver.com.