The Real Deal New York

Soho House doubles Chelsea office space

Rents at A & R Kalimian-owned complex near High Line climb to mid-$50s psf
By Mark Maurer | Twitter_logo_blue copy July 29, 2015 04:50PM

Soho House signed a 10-year lease to renew – and double – its Chelsea office space near the High Line, The Real Deal has learned.

The posh membership club and hotel houses its executive offices at A & R Kalimian Realty’s seven-story property at 513-519 West 20th Street, near 10th Avenue. The tenant, which moved into the building in 2012, will grow to 10,200 square feet from 5,000 square feet on the fifth floor.

Joseph Cayre’s Midtown Equities took full ownership of Soho House’s New York operation in February, buying out billionaire Ron Burkle’s stake for $67 million. In the city, the Soho House club is located at 29 Ninth Avenue in the Meatpacking District.

Average asking rents at the property are in the mid-$50s per square foot. Other tenants there include art logistics company Crozier Fine Arts and creative consulting firm Infinia Group.

Rents at the building were in the mid-$20s per square foot a mere five years ago, said Newmark Grubb Knight Frank’s Justin DiMare, who handles leasing at the complex.

“Since the High Line opened, rents have more than doubled as more creative office tenants have flocked to the neighborhood historically dominated by world-renowned galleries,” DiMare said.

Douglas Elliman Commercial’s Jim and Peter Gross, who represented Soho House in the deal, declined to comment.

The 83,000-square-foot building is part of a three-property, 250,000-square-foot complex along West 20th Street that A&R Kalimian, a Union Square-based property management firm, has owned since 1993.

Soho House’s New York club, which opened in 2003, is one of five outposts in the U.S. and 14 globally.