The Real Deal New York

Netflix original: Streaming giant subleases in Chelsea from Twitter

Streaming giant to occupy 10th floor for five years
By E.B. Solomont | August 16, 2017 12:20PM

Netflix CEO Reed Hastings and 245 West 17th Street

Netflix is coming to Chelsea this fall, after signing a lease for its first office in New York City.

The Silicon Valley-based streaming giant inked a deal to sublease 11,592 square feet from Twitter at 245 West 17th Street, according to CBRE, which represented Netflix.

Last year, Twitter offered 24,000 square feet on the second and third floors of its Chelsea headquarters for short-term lease. The asking rent was in the mid-to-high $60s per square foot, sources said.

Twitter also subleased the eighth and ninth floors of the building to Major League Baseball’s digital operations.

CBRE’s Timothy Hay, Robert Hill, Jared Isaacson and Sacha Zarba represented Netflix in the deal. Twitter was represented by Cresa Partners’ Barry Spagna and Eric Thomas.

The Jack Dorsey-led firm moved to its Chelsea digs in 2014, when it inked a deal for 140,000 square feet at 245 and 249 West 17th, two adjacent buildings between Seventh and Eighth avenues.

The property, owned by New York REIT, is currently on the market as part of the package that the real estate investment trust is looking to sell as part of its $2.8 billion liquidation. The REIT picked up 245-249 West 17th Street for $335 million in 2014, two years after seller Savanna paid $76 million for the property. Cushman & Wakefield’s Adam Spies and Doug Harmon are marketing the REIT’s assets.