What WeWork and others pay at 1450 Broadway

The 440,000-square-foot office tower is 83 percent leased to 36 tenants

New York /
Aug.August 30, 2021 08:00 AM
1450 Broadway and WeWork CEO Sandeep Mathrani (JLL, WeWork)

1450 Broadway and WeWork CEO Sandeep Mathrani (JLL, WeWork)

The following is a preview of one of the hundreds of data sets that will be available on TRD Pro — the one-stop real estate terminal that provides all the data and market information you need.

When WeWork began leasing at 1450 Broadway in October 2018, it had just become Manhattan’s biggest landlord. It was arguably its most important tenant, too.

One corporate meltdown and global health pandemic later, WeWork has lost its luster, but it is still writing checks at lots of buildings including the one at the corner of 41st Street and Broadway, where it occupies 62,000 square feet.

Bobby Zar’s ZG Capital Partners, which as fee owner of 1450 Broadway just returned to lenders for another refinancing, will use $215 million from a commercial mortgage-backed securities loan to retire $168 million of existing debt and cash out $23.8 million in equity. Documents associated with the securitization provide an inside look at the property’s finances.

The 440,000-square-foot office tower is 83.2 percent leased to 36 tenants, according to credit rating agency DBRS Morningstar.

Other tenants include apparel company Studio One, an affiliate of the owner, and brand management firm Iconix, whose brands are sold in Target, Macy’s, Kohl’s and JCPenney.

After WeWork, apparel companies make up 1450 Broadway’s next four largest tenants. Publisher Penguin Random House is seventh with 11,300 square feet.

ZG Capital Partners, a Zar Group affiliate, acquired the building in 2011 for $208 million. While the building remains largely occupied, with WeWork’s lease lasting until 2035, it will likely be tested by the shifting winds in the office market.

Over the course of its five-year, interest-only CMBS loan, 46.1 percent of rents are scheduled to expire — a high figure as companies debate returning to business as usual or maintaining a workforce-at-home.

On the other hand, should lease renewals continue to decline, it could signal more businesses seeking the flexibility WeWork and its kind offer. WeWork’s office occupancy rate recovered to 53 percent at the end of May, up from 47 percent late last year, though still well below its pre-pandemic norm of 70 to 80 percent.





    Related Articles

    arrow_forward_ios
    One Soho Square with Stellar Management’s Larry Gluck and Yotpo CEO Tomer Tagrin (LoopNet, Twitter, Gluck Family Foundation)
    Yotpo inks 30K sf sublease at Stellar’s One Soho Square
    Yotpo inks 30K sf sublease at Stellar’s One Soho Square
    Paramount Group's Albert Behler and 1301 Sixth Avenue (Getty, Paramount Group, Americasroof at English Wikipedia/CC BY-SA 3.0/via Wikimedia Commons)
    Law firm takes 142K sf at Paramount’s 1301 Sixth Ave
    Law firm takes 142K sf at Paramount’s 1301 Sixth Ave
    Related Companies' Stephen Ross and 50 Hudson Yards (Related Companies, 50 Hudson Yards)
    Bank takes 100K sf at Related’s 50 Hudson Yards
    Bank takes 100K sf at Related’s 50 Hudson Yards
    Marsh McLennan CEO Dan Glaser and 1166 Sixth Avenue (Marsh McLennan, Google Maps)
    Real estate asset manager doubling space in move to 1166 Sixth Avenue
    Real estate asset manager doubling space in move to 1166 Sixth Avenue
    Dotdash Merediths Neil Vogel and 225 Liberty Street (IAC, Brookfield, Getty)
    Publisher puts 331K sf up for sublease at Brookfield Place
    Publisher puts 331K sf up for sublease at Brookfield Place
    Brookfield's Brian Kingston, REBNY's Jonathan Resnick and Silverstein Properties’ Larry Silverstein (Getty, REBNY, Brookfield)
    Manhattan office leasing has busiest month of Covid era
    Manhattan office leasing has busiest month of Covid era
    ABS Partners founder Earle Altman and 200 Park Avenue South (Getty Images, ABS Partners)
    Revlon released from 200 Park Avenue South leases
    Revlon released from 200 Park Avenue South leases
    Silverstein's Marty Burger with 3 World Trade Center (LinkedIn, 3WTC)
    Silverstein CEO: RIP Five days a week in the office
    Silverstein CEO: RIP Five days a week in the office
    arrow_forward_ios

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

    Loading...