The Real Deal New York

Online lender SoFi inks pricey office lease at 860 Washington

$4.3B startup takes second floor at new building near the High Line
By Rich Bockmann | March 21, 2017 02:10PM

Social Finance’s Mike Cagney and 860 Washington Street (Credit: Cushman and Wakefield)

UPDATED, March 23, 1:19 p.m.: Social Finance, a financial tech firm that scored big last month when its Super Bowl commercial aired in overtime, is about to get some more exposure.

The $4.3 billion startup inked a lease at the Meatpacking District’s 860 Washington Street covering the full second floor, which sits level with the High Line and the millions of visitors who traverse the trendy park each year, sources told The Real Deal.

The 10-year lease covers 13,000 square feet of space in the 10-story building developed by Property Group Partners and Romanoff Equities, with 280 feet of frontage along the High Line and West 13th Street. Asking rent in the deal was $155 per square foot.

Representatives for Social Finance, also known as SoFi, and Property Group Partners did not immediately respond to requests for comment.

SoFi rose to prominence in 2011 when it became the first company to refinance both federal and private student loans together. The San Francisco-based company recently completed a $500 million fundraising round that reportedly valued the company at $4.3 billion.

The company was one of four advertisers who got more than their money’s worth when they bought Super Bowl ads at less than half the roughly $5 million rate that would run only if the game went into overtime. In December, SoFi pushed back plans for an initial public offering after the financial tech sector suffered a rough 2016 with slow growth and declining venture funding.

SoFi has an office in the Flatiron District at the MJ Orbach Associates’ 27 West 24th Street.

Upon relocating to 860 Washington, it will join other tenants such as the e-commerce giant Alibaba and health/wellness developer Delos Living, which are willing to pay triple-figure rents to be at the heart of the chic Meatpacking District, a recruiting tool that companies use to attract top talent.

The nearly 114,000-square-foot building has also attracted flashy retail. Tesla Motors last year signed a lease for 7,800 square feet to open a showroom at the base of the building.

Avison Young’s Anthony LoPresti represented SoFi in the negotiations. Cushman & Wakefield’s Stuart Romanoff represented the ownership. LoPresti declined to comment through a spokesperson, and Romanoff did not immediately respond to a request for comment.

Correction: A previous version of this article incorrectly identified the owner of the property at 27 West 24th Street. It is MJ Orbach Associates, not the Kaufman Organization.