WeWork to buy Extell’s leasehold in Hudson Square

Market for flexible office space is booming, executives say

New York /
Oct.October 05, 2012 06:00 PM

The flexible office suites company WeWork and the Boston-based investment firm AEW Capital Management are in contract to pay Extell Development $33.5 million for a long-term leasehold at 175 Varick Street in Hudson Square, several sources familiar with the deal said.

WeWork and AEW signed the contract to buy the long-term lease in August and the deal is expected to close in November, the sources said.

The Jones Lang LaSalle capital markets team of Richard Baxter, Jonathan Caplan, Scott Latham and Yoron Cohen was marketing the property on behalf of Extell.

WeWork, which leases flexible office space to short-term tenants, moved into the building nearly a year ago after signing a 15-year lease for 75,000 square feet in the building where it is now headquartered. The firm has six locations in Manhattan and one each in San Francisco and Los Angeles.

WeWork is part of a rapidly growing industry that leases office space to start-ups and other firms that have a limited presence in Manhattan. Other competing office companies active in the city include Virgo Business Centers, Emerge, Corporate Suites and Jay Suites. The company OfficeLinks recently inked a lease for its fifth location in Manhattan.

“The market is booming,” said Juda Srour, president of Jay Suites, which has five locations in Manhattan.

Extell bought the leasehold on the 185,000-square-foot office building located at the corner of Charlton Street, in 2005, for $24 million, data from CoStar Group shows. The building is owned by members of the Lehman family. Extell hired the JLL brokers last fall to market the leasehold, which city records show runs until the end of 2017.

Extell and JLL declined to comment. AEW and WeWork did not immediately respond to a request for comment.


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
StreetEasy to hike rental listing fees by 50% on June 1
StreetEasy to hike rental listing fees by 50% on June 1
StreetEasy to hike rental listing fees by 50% on June 1
Ascent Development's Tien Vominh and a rendering of the project at at 45-30 Pearson Street (Ascent Development)
Ascent nabs $48M construction loan for LIC condos
Ascent nabs $48M construction loan for LIC condos
James Dinan and Elizabeth Miller and the property (Josh Quick, J. Quick Studios, Getty)
Billionaire hedge funder James Dinan pays $49M for Palm Beach spec mansion
Billionaire hedge funder James Dinan pays $49M for Palm Beach spec mansion
Robert Rahmanian, Louis Adler, Lyndsey Casagrande, Kenny Fung and Robert Reffkin (Getty)
Real New York sues Compass agents for breach of contract
Real New York sues Compass agents for breach of contract
NYC landlords could find a lifeline in carbon trading
NYC landlords could find a lifeline in carbon trading
NYC landlords could find a lifeline in carbon trading
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...