Penguin Random House consolidates at SL Green’s 1745 Broadway

Publisher to occupy most of Midtown property

Aug.August 09, 2016 08:51 AM

Penguin Random House is closing the book on its Soho locations.

The book publishing giant plans to move its employees from 345 and 375 Hudson Street in Soho to its offices at SL Green Realty and Ivanhoe Cambridge’s 1745 Broadway, the Wall Street Journal reported.

The terms of the company’s lease at the building were not immediately clear, but the move will make Penguin essentially the “sole occupant” of the commercial portion of the Midtown building, said Penguin Random House Chief Executive Markus Dohle. Penguin Random House already lays claim to floors two through 25 and about 685,000 square feet, but in October was rumored to be vacating about half that space.

In a memo to employees, Dohle said SL Green TRData LogoTINY, which owns 56.9 percent of the office space, presented the company with an “unanticipated, one-time opportunity to accommodate us all in our Midtown location at a greatly reduced long-term rent.”

After the move, which is slated for early 2019, more than 2,400 employees will work at the Midtown office. The company expects the office consolidation to save $20 million annually. Pearson, one of two controlling parent companies of Penguin Random House, leases about 300,000 square feet at 375 Hudson and about 140,000 square feet at 345 Hudson, the Commercial Observer reported.

The 52-story, mixed-use building at 1745 Broadway, which consists of three adjacent towers, was developed by the Related Companies and completed in 2003.

Residential units in the building, known as Park Imperial Apartments, start on the 27th floor. SL Green acquired a minority stake in the building in 2007 and then bought up the Witkoff Group’s shares to secure a majority stake. Along with minority owner Ivanhoe Cambridge, SL Green put the office portion on the market for $700 million last fall.  [WSJ]Kathryn Brenzel

Related Articles

The Daily News Building at 220 East 42nd Street and SL Green CEO Marc Holliday (Credit: Getty Images)

SL Green puts Daily News building up for sale

SL Green snags private-equity firm at One Vanderbilt

SL Green snags private-equity firm at
One Vanderbilt

SL Green’s locks in big bank lease at Hudson Yards redevelopment site

SL Green’s locks in big bank lease at
Hudson Yards redevelopment site

1185 Sixth Avenue (Credit: Google Maps)

3 workers test positive for coronavirus at 3 SL Green office towers

315 West 33rd Street, SL Green's Marc Holliday and Brookfield's Ric Clark (Credit: SL Green, Getty Images)

Brookfield fund buying SL Green’s 315 West 33rd Street for $447M

Clockwise from left: 707 Eleventh Avenue, One Vanderbilt, SL Green chairman and CEO Marc Holliday and 410 Tenth Avenue (Credit: Google Maps, SL Green, Hines)

SL Green snaps up West Side office property

Boston Properties CEO Owen Thomas (left), Shearman & Sterling's David Beveridge, and 599 Lexington Avenue (Credit: Wikipedia)

Boston Properties inks big renewal with law firm at 599 Lex

Rendering of 540 Waverly Avenue

SL Green lends $59M for mixed-use Brooklyn project