The Real Deal New York

Is the doctor in? WebMD in talks for 147K sf at 395 Hudson

Kaplan Test Prep to sublet two-floor space at 600K sf building 
By Mark Maurer | December 08, 2014 04:10PM

WebMD is in late-stage negotiations to sublease more than 147,000 square feet of space at the New York City District Council of Carpenters’ 10-story office building at 395 Hudson StreetThe Real Deal has learned.

The online health information and news provider would occupy the entire 84,000-square-foot third floor and the majority – nearly 64,000 square feet – of the fourth floor, according to sources close to the deal. Kaplan Test Prep, an arm of the Fort Lauderdale, Fla.-based corporation Kaplan Inc., is the tenant leasing that space.

Kaplan’s lease at the 600,000-square-foot property expires in April 2024, sources said.

David Falk and Kyle Ciminelli of Newmark Grubb Knight Frank are representing WebMD, while JLL’s Scott Panzer represented Kaplan. The brokers were unavailable for comment.

A Cushman & Wakefield team led by Barry Zeller and Jonathan Serko handles leasing for the Hudson Square building. The asking rent there climbed from the low $60s last year to $72 as of September, TRD reported. The property also has the addresses 585-601 Greenwich Street, 387-403 Hudson Street and 30-48 Clarkson Street. Other tenants include the City University of New York and radio station Hot 97.

At the moment, WebMD’s New York office is at Google’s headquarters 111 Eighth Avenue, where it has about 100,000 square feet of space. The company was checking out Brookfield Office Properties’ 450 West 33rd Street, also known as 5 Manhattan West, among other buildings in recent months, sources said.