Knotel takes four floors at building that Isaac Chetrit plans to replace with skyscraper

Co-working company signs lease for 23K sf at 989 Sixth Ave.

May.May 25, 2018 11:38 AM

Knotel CEO Amol Sarva, Isaac Chetrit and 989 Sixth Avenue (Credit: Google Maps)

Knotel is continuing its leasing tear with a new deal at Isaac Chetrit and Sioni Group’s Garment District building, which the developers are planning to eventually replace with a skyscraper as tall as 1,005 feet.

The flexible-office provider signed for 23,000 square feet across four floors at the 21-story office building at 989-991 Sixth Avenue, a spokesperson for Knotel confirmed to The Real Deal. The lease covers floors four, 11, 16 and 17, the representative said.

Chetrit and Sioni, led by Ray and Jack Yadidi, completed their assemblage in 2015 when they paid Himmel & Meringoff Properties $26 million for 235,000 square feet of air rights from the landmarked Haier Building. They paid $49 million for 989 Sixth in 2007 and added the unfinished hotel development at 993 Sixth for $54.3 million in 2015.

Then, late last year, the developers hired Kohn Pedersen Fox to design their proposed 80-story, mixed-use tower.

Knotel would not comment on the length of the lease, but it is likely short-term because the developers have been waiting for the building’s remaining office leases to expire so they can demolish it. Excluding Knotel, the building’s last office lease expires in 2020.

The lease deal was direct with no brokers involved. The developers could not be reached for comment.

Knotel recently snatched up a bevy of leases in NoMad, the Flatiron District and Chelsea.

In a statement, Eugene Lee, global head of real estate and business development, said, “As Knotel becomes an established brand in office, we quickly fill floors with interesting companies on terms that support their business, while avoiding the inflexibility of traditional leases and the glass cubes of co-working.”

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