The Real Deal New York

JCPenney takes space in Kushner’s 200 Lafayette

May 02, 2012 09:00AM

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200 Lafayette Street

As it continues a major corporate overhaul, JCPenney signed a lease for new Soho office space to help lure a more innovative workforce. The New York Post reported it inked a 15-year deal for 130,000 square feet at 200 Lafayette Street, on the corner of Broome Street, a building purchased earlier this year for $50 million by Jared Kushner and CIM Group.

The move is part of a culture shake-up at JCPenney under new CEO, and former Apple executive, Ron Johnson, and will include the construction of a “spectacular” roof deck, according to a Post source. The space was marketed by David Falk, Jason Greenstein and Daniel Levine of Newmark Grubb Knight Frank for about $68 per foot, but the effective rent will be less as Penney will be responsible for all expenses and taxes.

Meanwhile, the building will undergo a $30 million renovation, as Kushner upgrades it to attract more tech firms who might otherwise seek Midtown South space. Before the purchase, many speculated the building would fare better as a condominium conversion. The property still has an 11,500-square-foot ground-floor retail vacancy. [Post, 1st item]

  • ManhattanBroker

    What a great deal! Nobody touched this building for 3 years and look who they signed!

  • nycREanon

    Susan Kurland strikes again! Best broker in NYC.

  • cgrp

    makes no sense, the last article says the building is 90,000 SF yet JC Penney signed a 130,000 SF lease?

  • MI ABS

    What I do not understand now is why would they purchase a new building when they will soon lay off many associates? I first read about how they let 900 associates go in Texas in the main office and then an article where they are letting some management go.

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