Digital marketing company Yodle, which last year abandoned plans for a $75 million initial public offering, sublet half of its 100,000-plus-square-foot office space on the West Side to the health information startup Outcome Health.
Yodle, which was founded in New York City in 2006, inked a deal to sublet 56,000 square feet to Outcome Health at Vornado Realty Trust’s 330 West 34th Street between Eighth and Ninth avenues, sources told The Real Deal.
Just two years ago, Yodle signed a 10-year lease at the property covering 114,000 square feet, with a rent starting at $60 per square foot. Outcome signed its sublease with a rent in the low $70s per square foot, and will take over the remaining term on Yodle’s sublease, a source with knowledge of the deal told TRD.
Representatives for the companies were not immediately available for comment.
Outcome, which recently changed its name from ContextMedia, occupies roughly 15,000 square feet at Equity Office Properties’ 114 West 41st Street, where it signed a five-year lease early last year.
Outcome plans to relocate its office and put its current space on the sublease market, sources said.
It wasn’t clear why Yodle decided to sublet its space. When the company signed its lease with Vornado in 2015, Yodle said it employed roughly 300 people and planned to hire 250 more over the next three years.
Yodle last year ditched plans for a $75 million IPO before it was acquired by Web.com, the parent company of health website WebMD, for $342 million.
Outcome reportedly just leased 400,000 square feet in Chicago, where the company is headquartered.
George Grace, Lewis Cowan, Brian Carlson and David Valdez of the tenant-specialist brokerage Mohr Partners represented Yodle along with a Cushman & Wakefield team of Peter Trivelas, Dirk Hrobsky, Chris Helgesen and Gary Ceder. Sacha Zarba and Jeff Fischer of CBRE negotiated on behalf of Outcome Health. The Cushman brokers declined to comment through a spokesperson and the CBRE brokers couldn’t be reached for comment.