Wellcom Worldwide Signs 24K-SF Lease at 16 Madison Square West
By Andrew Coen August 27, 2024 8:00 am
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A global production agency has signed a deal for a return to Manhattan following a short stay in Brooklyn, as its previous home is headed for an office-to-residential conversion.
Wellcom Worldwide inked a 10-year, 24,005-square-foot lease at Adams & Company’s 16 Madison Square West Flatiron District property, Commercial Observer has learned.
Asking rent was $59 per square foot, according to tenant broker Current Real Estate Advisors.
The company, which was acquired by Innocean Worldwide in 2019, occupied space at 175 Pearl Street in Brooklyn’s Dumbo neighborhood for the past five years and prior to that was at Chelsea’s Terminal Warehouse prior to it getting redeveloped.
The exact square footage Wellcom occupied at 175 Pearl was not disclosed, but Wellcom’s downsizing in its move to 16 Madison Square West, according to Current’s Adam Henick, who represented the tenant.
Wellcom’s move to Flatiron was spurred by the acquisition of 175 Pearl by Watermark Capital Group for $66.5 million from Cannon Hill Capital Partners, with plans to convert the 1918-built office building into a 238-unit multifamily property, CO previously reported.
Henick told CO the Flatiron area was attractive to Wellcom when it found out about the office-to-to-resi conversion at 175 Pearl due to the high office leasing velocity taking place in the neighborhood of late and its proximity to Madison Square Park.
“This office-to-resi conversion gave us the opportunity to start fresh with a brand new lease back in Manhattan,” Henick said. “Manhattan is more central and this premium location was a no brainer for Wellcom to take advantage of the opportunity.”
Henick added that, in addition to office leasing momentum in Flatiron, the neighborhood is also seeing more retail activity of late as well, noting that a new restaurant will also soon occupy a nearby space at 6 West 25th Street previously occupied by Jay Z’s 40-40 club.
Wellcom — the parent company of digital agency thelab and post-production company Dippin’ Sauce — also has U.S. offices in Los Angeles and Orlando along with eight international locations, according to its website. The company does not have a traditional headquarters due to its ownership structure with Innocean, which is owned by South Korea-based Hyundai.
“Wellcom’s decision to expand its footprint and make 16 Madison Square West it’s New York City work home is more than just a lease, it’s a statement about the vitality and long-term promise of Manhattan’s Flatiron District,” Adams & Co.’s Jeff Buslik, who handled the deal in-house for the landlord, said in a statement. “This deal is a prime example of the neighborhood’s resurgence, where the energy is palpable from the lively streets filled with eateries to the thriving businesses that are choosing to invest here for the long haul.”
The 12-story 16 Madison Square West, which has an alternative address of 1115 Broadway, property was built in 1914. Other tenants include workspace company Poppin and advertising firm Taboola.
“Returning to Manhattan is an important milestone for Wellcom,” David Bridges, the firm’s global CEO, said in a statement. “Many of our clients are located in the neighborhood and we are thrilled to welcome them to our new space.”
Andrew Coen can be reached at acoen@commercialobserver.com.
