Big Four advertising conglomerate Omnicom Group is rearranging its offices at 195 Broadway in Lower Manhattan in a deal that frees up some of the building’s upper floors for landlord L&L Holding Company.
The Fortune 500 company extended the term for another 15 years on the roughly 288,000 square feet it occupies in the 29-story building, which for much of the 20th Century had been the headquarters of AT&T, sources told The Real Deal.
The deal relocates some of the advertiser’s upper floors down to a contiguous block in the base of the building spanning about 205,000 square feet on floors four through eight, sources said. The space includes the 30-foot-tall former AT&T auditorium spanning the fourth and fifth floors. Omnicom will continue to occupy roughly 82,000 square feet on the 17th and 18th floors of the 1 million-square-foot property.
Representatives for both Omnicom and L&L declined to comment. Feld Realty’s Lee Feld, who represented Omnicom, couldn’t be reached for comment. L&L’s David Berkey and Andrew Wiener represented the landlord in-house.
Asking rents in the building are $65 per square foot, sources told TRD.
Omnicom first moved into 184,000 square feet in the building in 2008, and grew its footprint through expansion options in the lease. Other tenants in the building include book publisher HarperCollins, which signed a 185,000-square-foot lease in 2013, and fellow publisher Abrams, which signed a 42,000-square-foot lease there about a year ago.
L&L Holding bought the property in 2005 for $206 million, and recapitalized it in late 2016 alongside Beacon Capital Partners by selling the majority interest to JPMorgan Chase for $498.5 million. The owners recently completed a $50 million redevelopment of the property’s retail component and inked deals with tenants like Nobu and Anthropologie.
L&L recently formed a $500 million joint venture with JPMorgan, which is administering the investment fund on behalf of the California State Teachers’ Retirement System pension fund.