The Real Deal New York

WeWork is taking a majority of this Chelsea office property

The co-working firm signed a 60K sf lease at L&L's 511 West 25th
By Christian Bautista | September 21, 2018 12:30PM

Adam Neumann and 511 West 25th Street (Credit: L&L Holding Company)

Just days after announcing its status as Manhattan’s largest office tenant, WeWork notched another new lease, signing on for 60,000 square feet at 511 West 25th Street in Chelsea.

The co-working firm will occupy floors to two to nine of L&L Holding Company and PGIM Real Estate’s nine-story office building.

The new Chelsea lease builds on WeWork’s extensive deal sheet in the neighborhood for the year. In February, the firm signed a 167,000-square-foot lease at the Schaffer family’s 18 West 18th Street. It then followed up with a 100,000-square-foot deal at Walter & Samuels’ 214 West 29tha few months after.

Granit Gjonbalaj, WeWork’s chief development officer, told The Real Deal in a statement that the company was attracted to the location because of an influx of “leading companies” moving into the area.

WeWork’s new location is part of the three-building Ironworks complex near the High Line. The owners were reportedly seeking a single tenant to fill the 85,000-square-foot occupancy in the property.

L&L and PGIM acquired the 194,000-square-foot complex, with the address of 511-541 West 25th Street, for $160 million in 2014. The firms reportedly put the buildings on the market in April of last year with an asking price of $200 million, or $1,000 per square foot. Other office tenants in the complex include Target and public relations firm Bismarck Philips Communications and Media.

Earlier this week, WeWork announced that it has surpassed JPMorgan Chase as Manhattan’s largest office tenant. The firm’s portfolio in the borough now totals 5.3 million square feet across 50 locations.