The Real Deal New York

Penguin Random House signs 604K sf extension at SL Green’s 1745 Broadway

Publisher plans to close Soho offices
By Konrad Putzier | September 07, 2016 09:13AM

SL Green's Marc Holliday, 1745 Broadway in Midtown and Random House's Markus Dohle

SL Green’s Marc Holliday, 1745 Broadway in Midtown and Random House’s Markus Dohle

Penguin Random House is opening a new chapter in Midtown, inking a lease extension for 603,650 square feet at SL Green Realty and Ivanhoe Cambridge’s 1745 Broadway, the landlords said in a statement Wednesday.

The new lease comes as the megapublisher looks to close its Soho offices at 345 and 375 Hudson Street and move operations to the Midtown tower. The Wall Street Journal first reported the planned move last month, but terms of a new lease weren’t disclosed at the time.

At the time, Penguin Random House CEO Markus Dohle said the new lease comes with “greatly reduced long-term rent.”

Penguin Random House’s old lease at the Midtown tower, also known as the “Random House Tower,” was set to expired in 2018. The new lease runs through June 2033. Cushman & Wakefield TRData LogoTINY represented the publisher in the deal, while SL Green was represented in-house.

The 52-story building is split between office space on the lower levels and apartments at the Park Imperial condominium starting on the 27th floor. SL Green first bought a stake in the tower in 2007, expanding it last year. The REIT and Ivanhoe Cambridge put the office portion on the market for $700 million in October.

Penguin Random House says about 2,400 employees will work out of 1745 Broadway.