TD Bank picks up corner spot at Chelsea hotel

Move marks Canadian bank’s latest expansion into NYC
By Julie Strickland | November 13, 2013 06:09PM

TD Bank has inked a deal for 3,000 square feet of ground-floor space at the base of the Chelsea Savoy hotel.

Located at 202 West 23rd Street, on the corner of Seventh Avenue, the new location is close to several more of the bank’s branches and is part of the institution’s growth strategy in New York City, a company spokesman told The Real Deal.

Toronto-based TD secured a 20-year lease with options to renew, at a value of $26 million for the life of the lease, Ike Chehebar of the Jackson Group, who represented the building owner in the deal, told The Real Deal.

The location was formerly home to Beth Israel Medical Center, and TD will be taking the space shortly after renovations are completed.

“They’re increasing and have a spot two blocks north that they’re very happy with, so they wanted to Target The 23rd Street thoroughfare,” Chehebar said. “They saw this as a great intersection where a train is.”

The bank reportedly announced plans for a major expansion in New York City earlier this year, which will ultimately increase the institution’s presence in the Big Apple by over 50 percent in the next three years.

The six-story, 89-room Chelsea Savoy hotel is an inexpensive crash pad where, according to a description in New York Magazine, “the room rates are inversely proportional to its fancy-sounding name.”

The owners, whom Chehebar declined to name and are listed as 202-4 West 23rd Street Corporation in city property records, did not disclose the agreed-upon rent.

Joanne Podell of Cushman & Wakefield, who represented TD Bank in the transaction, was not immediately available for comment.