Leases  ·  Office

SoundCloud Moving NYC HQ to the Meatpacking District

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The company that helped birth a generation of rap is packing its bags in Union Square and heading to the Meatpacking District, Commercial Observer has learned.

Music streaming service SoundCloud signed a sublease with Kobalt Music Group for 23,000 square feet on the entire sixth floor of William Kaufman Organization’s 2 Gansevoort Street, according to sources with knowledge of the deal.

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The length of the lease was unclear, but one source said the asking rent was $75 per square foot.

The Germany-based SoundCloud originally opened a New York City office in 2014 at 101 Fifth Avenue and later moved to nearby 71 Fifth Avenue, a block west of Union Square. It plans to relocate from 71 Fifth to its new digs on Jan. 1, a source said.

And SoundCloud’s deal means the music won’t stop at 2 Gansevoort. SoundCloud will take over the space from music publishing company Kobalt, which signed a lease in the nine-story building in 2017. It’s unclear why Kobalt subleased the space.

SavillsPeter Hennessy, Jim Wenk and Kirill Azovtsev represented the tenant in the deal. It’s unclear who brokered it for Kobalt.

The Savills brokers and a spokesperson for William Kaufman declined to comment on the deal.

Other tenants in the 210,000-square-foot building at the corner of Gansevoort and West 13th streets include health care company Rightway, fashion house Theory Holdings and life sciences company Fortress Biotech.

With additional reporting by Abigail Nehring.

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