Cannon Hill, Williams, Global Holdings Take Over Flatiron District Ground Lease

Cannon Hill Capital Partners, Global Holdings and Williams Equities have taken over the ground lease on an office property in the Flatiron District valued at $38 million as part of its recapitalization of the connected 888 Broadway, according to the company and city records made public Tuesday.

Cannon Hill, through the entity 880 Broadway Tenant, acquired the ground lease at 33 East 18th Street — which extends through to 38 East 19th Street — from Colliers (CIGI), records show.

Eric Rubin, a founder and chief investment officer at Cannon Hill, signed for the buyer, while Colliers’ William Stempel signed for the seller, according to records.

The building is part of the two-building, 220,000-square-foot 888 Broadway complex, which Cannon Hill completed a $200 million recapitalization on earlier this month, which added Global Holdings and Williams Equities as equity partners, Commercial Observer previously reported.

As part of that partnership, Williams Equities contributed its fee title to Cannon Hill and Global Holdings in 38 East 19th Street, , CO reported.

Netflix, which took 100,000-square-foot at 888 Broadway in 2019, signed a lease agreement earlier this month to stay at the Flatiron District space through June 2032, records show.

It’s unclear who brokered the deal. Spokespeople for Cannon Hill, Columbia, Colliers and CBRE — which handles office leasing at 38 East 19th Street — did not respond to requests for comment.

The property between Park Avenue South and Fifth Avenue seems to comprise office space at 38 East 19th Street, which is entirely net-leased to ABC Carpet & Home and is also home to chef Jean-Georges Vongerichten’s restaurant ABC Cocina.

Update: This story has been updated to correct that it was a ground lease transfer as part of the recap of 888 Broadway and not a sale.

Isabelle Durso can be reached at idurso@commercialobserver.com.