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

arrow_forward_ios
Cushman & Wakefield’s Brett White

Cushman & Wakefield reports $101M quarterly loss

Cushman & Wakefield reports $101M quarterly loss
Durst Organization chairman Douglas Durst and Advance Publications president Donald Newhouse with One World Trade Center (Newhouse by Ilya S. Savenok/Getty Images for The Association for Frontotemporal Degeneration; Unsplash)

Condé Nast may be moving out of 1 WTC

Condé Nast may be moving out of 1 WTC
Moody's CEO Raymond McDaniel and 1 World Trade Center (McDaniel by Alex Wong/Getty Images; Pixabay)

Moody’s looks to sublease its 1 WTC office

Moody’s looks to sublease its 1 WTC office
From left: Manhattan Mall at 100 West 33rd Street, Vornado CEO Steven Roth and a rendering of the Farley Post Office building (Roth by Misha Friedman/Getty Images; Manhattan Mall via VNO; Farley Building via SOM)

Vornado may convert Midtown J.C. Penney space to last-mile facility

Vornado may convert Midtown J.C. Penney space to last-mile facility
(iStock)

TRD Insights: Nationwide office leasing demand hits two-decade low

TRD Insights: Nationwide office leasing demand hits two-decade low
Bryant Park Hotel at 40 West 40 Street (Google Maps; iStock)

Bryant Park Hotel being marketed as office space

Bryant Park Hotel being marketed as office space
28 Liberty Street (Wikipedia)

Manhattan’s office leasing sees busiest month since January

Manhattan’s office leasing sees busiest month since January
Facebook CEO Mark Zuckerberg and a rendering of the Farley Post Office building redevelopment (Credit: Getty Images, SOM)

Farley gets Zucked: Facebook signs huge lease at Post Office redevelopment

Farley gets Zucked: Facebook signs huge lease at Post Office redevelopment
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...