French advertising giant Publicis doubles down on Hudson Square with 960K sq ft renewal-expansion

Trinity Church and partners acquired leasehold from Tishman Speyer in 2017

TRD New York /
Jul.July 09, 2019 09:30 AM

Publicis Groupe CEO Arthur Sadoun and 375 Hudson Street (Credit: Getty Images)

Saatchi & Saatchi is coming home.

The advertising agency’s parent company, French multinational media giant Publicis Groupe, has inked a massive, long-term deal at the former Saatchi & Saatchi Building at 375 Hudson Street, the New York Post reported. In addition to a 20-year renewal on a 680,000-square-foot lease several years before expiry, the firm is taking up another 280,000 square feet at the building starting in August.

Publicis is planning to relocate all of its agencies from 1675 Broadway to 375 Hudson Street, senior vice president for real estate Thomas Trepanier told the Post.

CBRE’s Howard Fiddle, Paul Amrich and Ben Joseph represented the landlord in the deal, while CBRE’s John Maher, Paul Myers, Mike Wellen, Greg Maurer-Hollaender and Cara Chayet represented the tenant.

Saatchi & Saatchi, a British advertising agency which Publicis acquired in 2000, had been at the building since Tishman Speyer first built it in 1989, but relocated to Publicis’ Midtown headquarters in 2017.

Trinity Church, which originally owned the land under the property, bought the leasehold on the office building from Tishman Speyer in 2017. The price was undisclosed, but Trinity financed the acquisition with a $400 million loan from Goldman Sachs.

Trinity, one of the most active religious institutions in the city’s real estate market, partnered with Norway’s sovereign wealth fund in 2015 in a deal that valued its 11-building Hudson Square commercial portfolio at $3.55 billion. The joint venture brought in Hines to operate the portfolio the following year.

The 6 million-square-foot portfolio is now 99 percent leased, after hitting a vacancy of 9 percent in early 2017.

Publicis’ expansion was made possible by Penguin Random House’s move to Midtown in 2016, freeing up expansion space on floors two through five of the building. Google, which is planning a 1.7 million-square-foot campus in the neighborhood, also took up 140,000 square feet of Penguin’s former space at nearby 345 Hudson. [NYP] — Kevin Sun

Related Articles

 561 Greenwich Street (Credit: Google Maps)

Trinity Church to construct another Hudson Square office tower

From left: 295 Fifth Avenue, 3 World Trade Center, 50 Rockefeller Plaza (Credit: Google Maps, Wikipedia)

These were NYC’s top office leases in October

50 Rockefeller Plaza and Katten's Chris DiAngelo (Credit: Google and Katten)

Katten law firm moving to Rockefeller Center

An aerial view One World Trade Center in Lower Manhattan (Credit: iStock)

On anniversary of 9/11, the World Trade Center office market is now helping propel Downtown

Clockwise from top left: 310 Hudson Street, the site at 71-12 Park Avenue in Queens, 92-33 Guy R Brewer Boulevard and a rendering of 165 Broome Street (Credit: Google Maps and Handel Architects)

The top 10 biggest real estate projects coming to NYC

Clockwise from top left: 733 Third Avenue, 24-01 44th Road in Long Island City, 83 Maiden Lane, and 1745 Broadway (Credit: Google Maps)

These were NYC’s top office leases in August

Clockwise from left to right: 50 Hudson Yards, Farley Post Office redevelopment, 1 Madison Avenue, and Apple CEO Tim Cook (Credit: Hudson Yards, Skanska, Google Maps, and Getty Images)

Apple on the hunt for enormous Manhattan office space

304 Hudson Street and Walt Disney Company CEO Robert Iger (Credit: Google Maps)

Revealed: Disney’s plans for a 19-story complex in Hudson Square