JCPenney takes space in Kushner’s 200 Lafayette
As it continues a major corporate overhaul, JCPenney signed a lease for new Soho office space to help lure a more innovative workforce. The New York Post reported it inked a 15-year deal for 130,000 square feet at 200 Lafayette Street, on the corner of Broome Street, a building purchased earlier this year for $50 million by Jared Kushner and CIM Group.
The move is part of a culture shake-up at JCPenney under new CEO, and former Apple executive, Ron Johnson, and will include the construction of a “spectacular” roof deck, according to a Post source. The space was marketed by David Falk, Jason Greenstein and Daniel Levine of Newmark Grubb Knight Frank for about $68 per foot, but the effective rent will be less as Penney will be responsible for all expenses and taxes.
Meanwhile, the building will undergo a $30 million renovation, as Kushner upgrades it to attract more tech firms who might otherwise seek Midtown South space. Before the purchase, many speculated the building would fare better as a condominium conversion. The property still has an 11,500-square-foot ground-floor retail vacancy. [Post, 1st item]