The Real Deal New York

Regus expands NYC takeover with new Midtown lease

July 31, 2013 02:30PM
By Hiten Samtani

Regus CEO Mark Dixon and 104 West 40th Street

Regus CEO Mark Dixon and 104 West 40th Street (center)

Luxembourg-based office space provider Regus continued its breakneck expansion in Manhattan, with a new location at David Tawfik’s 104 West 40th Street in Midtown, The Real Deal has learned from CompStak.

Regus has taken 29,982 square feet — spanning the entire fourth and fifth floors — at the 21-story, 2.1 million-square-foot building in the Penn Plaza district, both the CompStak data and Regus’ own website show.

The company will pay rents starting in the mid-$40s per square foot in the ten-year deal, in line with other recent deals at the building, according to CompStak. The landlord was represented by CBRE’s Paul Amrich, Neil King and Michael Movshovich, none of whom were immediately available for comment. Representatives for Regus weren’t immediately available for comment.

Regus – which has over 1,500 locations in 600 cities — has already started marketing the space to prospective tenants, typically small-to-medium enterprises and startups, the website shows. This is at least the fifth lease that Regus has signed in Manhattan in recent months, including a 10-year, 22,450-square-foot deal at Savanna’s 31 Penn Plaza and a 40,000-square-foot lease at Brookfield Office Properties’ 3 World Financial Center.

The company has space in about 40 Manhattan locations, including Rockefeller Center, 1501 Broadway in Times Square, and at the Helmsley Building at 230 Park Avenue, according to its website.

In February, residential brokerage Oxford Property Group struck a deal with Regus that grants the residential brokerage’s agents access to the office provider’s Manhattan spaces.

Tawfik’s Princeton International Properties purchased 104 West 40th from Savanna this past December for $103 million, or about $486 per square foot, according to CoStar. About three years earlier, Savanna had purchased ING’s defaulted debt on the property for about $61.7 million, in what industry insiders had lauded as an innovative deal, as The Real Deal reported.

Since the acquisition, Princeton has enjoyed robust leasing activity at the building, including a 25,000-square-foot deal with a subsidiary of advertising conglomerate Interpublic Group.

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