The Real Deal New York

Normandy inks 34K sf lease with red-hot software company at 888 Broadway

Atlassian is moving into the former ABC Carpet building
By Rich Bockmann | July 30, 2018 05:20PM

888 Broadway and Normandy’s Finn Wentworth (Credit: Google Maps and Normandy)

An Australian software company that counts SpaceX and NASA as clients is moving into Normandy Real Estate Partners’ conversion of the ABC Carpet & Home building into high-end offices.

Atlassian, which has a market capitalization of roughly $15 billion after going public in 2015, signed a lease for almost 34,000 square feet on the third floor of 888 Broadway, according to Compstak.

Starting rent in the 10-year deal was north of $100 per square foot, Compstak’s data shows. Atlassian signed the lease in the first quarter of this year, but the deal has not been reported.

Representatives for the company could not be immediately reached. Normandy did not respond to requests for comment.

The developer bought the Flatiron District property in December for $133 million, and earlier this year kicked off a $40 million plan to convert the third through sixth floors of the building into pricey office space.

Neil King and Paul Amrich at CBRE are handling leasing at the building. They declined to comment through a spokesperson. JLL’s Steven Rotter represented Atlassian in the negotiations and couldn’t be immediately reached.

Atlassian’s website lists its New York City office at 55 Broadway in the Financial District. The offices appear to be the former headquarters of project-management company Trello, which Atlassian acquired early last year for $425 million.

Atlassian co-founders Mike Cannon-Brookes and Scott Farquhar saw their net worth soar as the company’s stock surged earlier this year, propelling them onto Bloomberg’s list of the world’s 500 richest people. They’re each worth $4.8 billion, according to Forbes.

Farquhar, 37, reportedly holds the record for Australia’s most-expensive home. Last year he paid $71 million to purchase a 23,000-square-foot waterfront mansion in a suburb of Sydney.