Netflix streaming into Flatiron District

Media giant in talks for 40K sf at Normandy’s 888 Broadway

Sep.September 19, 2018 02:00 PM

Characters from Netflix’s Orange is the New Black, Bojack Horseman, Unbreakable Kimmy Schmidt, and 888 Broadway (Credit: Wikipedia and Google Maps)

Fresh off its impressive haul at the Emmys, Netflix is planning to open a new office in the Flatiron District.

The streaming-video and distribution company, which has a market cap of nearly $160 billion, is in late-stage talks to lease space at Normandy Real Estate Partners’ 888 Broadway, sources told The Real Deal. Netflix is in discussions to occupy 38,000 square feet.

Normandy is converting the upper floors of the former ABC Carpet & Home building, which sits at the corner of East 19th Street between Madison Square and Union Square parks, into office space for the tech and media crowd that transformed Midtown South.

The starting rent for the 12-year lease is in the low $130s per square foot, according to CompStak. A spokesperson for Netflix declined to comment, and a representative for Normandy did not respond to a request for comment.

The Broadway building is a few blocks away from Netflix’s current New York office in Chelsea. Netflix signed a five-year sublease with Twitter last year for about 12,000 square feet at 245 West 17th Street for its first office in the city.

It was not immediately clear if Netflix will be relocating the Chelsea operations to 888 Broadway in the deal, or if it will keep that space in addition to the new office.

Netflix – which created popular shows like “Orange is the New Black” and “House of Cards” – took home 23 Emmys Monday, tying premium cable channel HBO.

Late last year, Normandy bought the floors above ABC Carpet’s ground-floor retail condo at 888 Broadway and the interconnected building at 38 East 19th Street for $130 million. The New Jersey-based investment firm is spending $40 million converting the property into modern office space.

Australian software company Atlassian signed a lease to take nearly 34,000 square feet on the building’s third floor in July.

A CBRE team led by Neil King and Paul Amrich is handling leasing at the property.

Their colleagues Timothy Hay, Robert Hill, Jared Isaacson and Sacha Zarba are representing Netflix. The brokers did not respond to requests for comment.

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