Leases  ·  Office

Kobalt Music Recommits to 2 Gansevoort With New 10K SF Deal

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Kobalt Music Group just couldn’t quit 2 Gansevoort Street.

After subleasing all its offices in the nine-story Meatpacking District building, the music publishing company dropped a fresh 10-year deal for 10,000 square feet, according to a source with knowledge of the deal. Asking rent was $115 per square foot.

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Kobalt originally signed on to move its headquarters to 23,000 square feet on the entire sixth floor of Sage‘s 2 Gansevoort in 2017, but decided to give it all up and subleased it to music streaming service SoundCloud last year, as CO previously reported.

However, Kobalt — which has offices in London and Los Angeles — wanted to retain some presence in the building, so signed a fresh deal for the smaller digs, the source said.

The tech-based music publisher Kobalt founded in 2000 and works with artists including Phoebe Bridgers, The Lumineers, Paul McCartney and Stevie Nicks. It recently got some additional financing to up its funding power to an off-the-charts $1 billion, according to a press release from the company.

SavillsScott Bogetti and Kirill Azovtsev brokered the pitch-perfect deal for Kobalt while Sage’s Micheal Lenchner remixed it in-house for the landlord, formerly known as the William Kaufman Organization. The Savills brokers declined to comment.

Lenchner said in a statement that Kobalt’s return to the building happened in one of the landlord’s new pre-built, move-in ready suites, with tenants able to access communal spaces including a coffee bar and meeting rooms.

“We are thrilled that Kobalt Music Group is expanding and has extended their lease at 2 Gansevoort Street,” Lenchner said in a statement. “We are also excited to share that they are the first to move into a new office product offering of Sage’s, which will be launching soon. All office suites on the floor will be brand new construction, fully furnished, wired and move-in ready.”

Other tenants in the 210,000-square-foot building include fashion house Theory Holdings, life sciences company Fortress Biotech and health care firm Rightway.

Update: This story was updated to include a comment from Michael Lenchner.

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