After enduring several challenging years marked by transitions, including three different CEOs, a major bankruptcy restructuring, and new ownership, WeWork is making a significant comeback in the flexible workspace arena.
Recently, the company announced its signing of a 60,000 square foot lease at 250 Broadway in New York City’s Financial District.
This marks WeWork’s first new coworking deal in the United States since its bankruptcy and its first in New York City since 2019.
The premises will occupy Floors 24, 25, and 27 to 29 of the AmTrust RE-owned building, with an anticipated opening date set for December.
Under the leadership of CEO John Santora, a former executive at Cushman & Wakefield, and as a majority owner under Yardi Systems, WeWork appears to have adopted a more mature approach since emerging from bankruptcy.
In addition to this new lease, the company has secured two deals in Midtown; however, both spaces will be fully occupied by Amazon.
The lease at 250 Broadway indicates WeWork’s return to a growth trajectory after five years of downsizing and cutting hundreds of locations.
For 2023, WeWork has plans to invest between $80 million and $100 million into its global portfolio.
The resurgence aligns with an increasing demand for coworking spaces in New York City, evidenced by a 10% rise in memberships and a 6% increase in foot traffic from January to April this year.
Currently, WeWork operates over 3 million square feet of coworking spaces in the city, with Santora emphasizing that New York City remains a critical launchpad for their new era of strategic growth.
Representatives for the landlord, including CBRE’s Brad Gerla, Michael Rizzo, and Alex Benisatto along with AmTrust RE’s Anne Holker brokered the deal.
On the tenant side, JLL’s Peter Riguardi, Clark Finney, Alexander Riguardi, Dana Goldman, and WeWork’s Peter Greenspan and Whitney Anderson facilitated the transaction.
In addition to WeWork’s lease news, several other noteworthy leases have emerged in the city.
Engineering, development, and management consultancy firm Mott MacDonald NY will be relocating its headquarters to a new 25,000 square foot space at the Empire State Building.
The firm is retaining its 27,000 square foot space at 1400 Broadway, owned by Empire State Realty Trust, while expanding to the iconic tower.
Colliers’ Sheena Gohil, Jack Senske, and Teresa DeLeo represented Mott MacDonald, while Empire State Realty Trust’s Shanae Ursini and Newmark’s team of Scott Klau, Erik Harris, Neil Rubin, Brent Ozarowski, Zachary Weil, and Cole Gendels worked on behalf of the landlord.
Another significant lease renewal comes from MechoShade, which has extended its 30,000 square foot lease at J.B. Industries’ 35-02 Skillman Ave., where it engages in research and development of solar shading systems.
JLL served as the sole broker for this transaction, with Paul Mas, Michael Mazzara, and Paul Kauffman leading the leasing efforts.
Invesco, an investment management company, has renewed more than 200,000 square feet at Brookfield Properties’ 225 Liberty St.
This building is within Brookfield Place, a larger campus comprising 2.5 million square feet directly across from the World Trade Center.
Law firm Paul, Weiss, Rifkind, Wharton & Garrison also made headlines by expanding its presence at 1345 Sixth Avenue, with an 85,000 square foot sublease.
Once completed, the firm will occupy a total of 850,000 square feet within the building, thanks to the new space on the 29th and 30th floors.
According to Commercial Observer’s report, asking rents in this deal were $87 per square foot.
The previous tenant on the 29th and 30th floors was Global Infrastructure Partners; however, the identity of the sublandlord remains unconfirmed.
JLL represented the sublandlord in this transaction, while Newmark’s Chris Mongeluzo, Moshe Sukenik, and Brian Cohen represented Paul, Weiss.
In a notable transaction, Sumitomo Mitsui Banking Corp. signed a 50,000 square foot deal at the Stahl Organization’s 277 Park Ave.
This agreement increases its total space in the building to 316,000 square feet and indicates high demand, with the building now 98% leased.
Cushman & Wakefield’s Mark Boisi, Bryan Boisi, and Stephen Bellwood acted on behalf of the landlord in this transaction.
In terms of financing deals, Tishman Speyer successfully secured $385 million in refinancing loans for their Class-A office tower at 300 Park Ave.
This financing is composed of a $330 million CMBS loan with a fixed interest rate of 5.4% and a $55 million mezzanine loan from Macquarie Capital Principal Finance.
Key lenders involved include JPMorgan Chase, Deutsche Bank Securities, and Morgan Stanley, with the new financing being allocated to pay off maturing debts.
MacArthur Holdings received a $47 million first mortgage from JPMorgan for its property at 415 W. 13th St., located in the trendy Meatpacking District, where its retail and condominium units are fully leased.
The capital raised from this loan will help the company settle existing debts and cover closing costs.
A team at Ripco Real Estate, including Adam Hakim, James Murad, and Michael Winter, facilitated this financing.
Stellar Management landed a $95 million refinancing package for the Windermere West End, an Upper West Side apartment building located at 666 West End Ave.
The lender for this refinancing is an entity known as West End Lender LLC, associated with Adler & Stachenfeld law firm.
This new loan replaces a previously existing $119 million CMBS loan.
Algin Management also made headlines with a $325 million refinancing deal covering six apartment properties, financed by New York Life Insurance Co.
This financing supersedes an equivalent loan of $325 million.
These properties include 1,320 rental units across multiple locations such as 300 Mercer St., 200 E. 33rd St., and 229 W. 60th St.
Grubb Properties procured a $129.4 million loan from Maxim Capital Group aimed at supporting the development of a new 462-unit apartment building at 111 Washington St.
Previously, the same lender provided $106.7 million before construction at the property experienced delays last year.
In the realm of property sales, the Upper West Side saw the sale of 10 W. 65th St. for $45.6 million.
Clipper Equity’s David Bistricer sold the six-story rental apartment building to Janusz Sendowski, who financed the acquisition with a $31 million loan from JPMorgan.
Last changing hands in 2017 for $79 million, this Lincoln Square property is a prominent piece of real estate in the market.
Additionally, Meadow Partners acquired retail space at 200 Lafayette St., anchored by Eataly, for $37 million from Brookfield, adding to its real estate portfolio.
This 31,000 square foot commercial condo features 28,000 square feet of retail and office space spread across eight floors.
The majority of the space is situated on the ground and second floors, while the entirety of the seven-story building was not included in the sale.
Lastly, the New York Power Authority invested $206.8 million to acquire 21-25 13th Ave., a 15.7-acre lot in Astoria, from BP.
The site, previously housing a ConEd power plant, is adjacent to NYPA’s energy complex at 31-03 20th Ave.
The acquisition reflects NYPA’s ongoing commitment to enhancing energy infrastructure and sustainability efforts in the area.
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