The Real Deal New York

Facebook in advanced talks for new office at 225 PAS: sources

Social networking giant near deal for about 190K sf at Midtown South property

March 24, 2016 06:32PM
By Rich Bockmann

Mark Zuckerberg and renderings of 225 Park Avenue South (renderings credit: Neoscape)

Mark Zuckerberg and renderings of 225 Park Avenue South (renderings credit: Neoscape)

Wow! 225 Park Avenue South. Haha!

It’s a good thing Facebook recently launched Reactions, because now it has options to show how much it likes – no, loves – the Midtown South office building that’s also home to BuzzFeed.

The Mark Zuckerberg-led social media giant, which has a market cap of nearly $330 billion, is in advanced negotiations to take nearly 190,000 square feet in the newly renovated Orda Management property, sources told The Real Deal.

That’s a big chunk of what’s left at the building after BuzzFeed took 190,000 square feet in late 2014 following the Port Authority of New York and New Jersey’s exodus to the World Trade Center.

Orda embarked on a multimillion-dollar makeover of the building and its neighbor, 233 Park Avenue South, combining the two buildings through a shared stairwell and adding features like a penthouse opening up to a “private sky garden.”

Now Facebook, fresh off of an expansion at 770 Broadway to 355,000 square feet, is in talks for nearly 190,000 square feet at 225 PAS.

The space most likely covers the sixth through 10th floors, which run between both buildings. Asking rents are $85 per square foot.

Another block of roughly 80,000 square feet sits at the top three floors of 225 PAS, which includes a 4,000-square-foot outdoor terrace. Asking rents on those floors are $95 per square foot.

Robert Tunis and Eric Ferriello of Colliers International are representing Facebook along with Warren Wixen of Wixen Real Estate out of Los Angeles. A Newmark Grubb Knight Frank team including Barry Gosin, Brian Waterman and Andrew Peretz is representing the landlord. The brokers either declined to comment or could not be reached.

Facebook’s options could include a semi-private lobby with a dedicated concierge service.

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