Compass in talks for Town’s Flatiron flagship
VC-backed firm is looking to lease 50k sf over three floors
Compass is in late-stage talks to take over Town Residential’s 16,600-square-foot flagship in the Flatiron district, sources said.
The venture-backed firm, which recently expanded at 90 Fifth Avenue, is looking to take as much as 49,800 square feet over three floors at 110 Fifth Avenue.
Town’s full-floor office — the firm’s first location when it launched in 2010 — is on the sixth floor of the 11-story building. Sources familiar with the negotiations said Compass is also looking to lease the fourth and fifth floors. The asking rent for all three is $80 per foot.
Compass and Town both declined to comment.
Town’s closure of its resale and leasing divisions last week put three out of four of its office leases in play. In addition to 110 Fifth, it had an office at 33 Irving Place with 8,250 square feet and an office at 26 Astor Place with 6,800 square feet. Each has been built out specifically for a brokerage business.
Related: Town Residential shutting down sale and leasing business
Last month, Town closed its Upper East Side office as part of a restructuring and moved the agents and managers to its new West Side flagship at 888 Seventh Avenue.
Town has said it will continue to operate its new development division at 888 Seventh. It leased more than 15,000 square feet there last summer.
Town informed agents it would close its resale and leasing operation last week, as The Real Deal first reported. In the hours and days since, rival firms have courted more than 300 ex-Town agents.
Its offices are also up for grabs, and the Corcoran Group is also looking at Town’s spaces. “If there were bricks and mortar locations that made sense,” CEO Pam Liebman said, “we would certainly explore the possibilities.”
Related: Town Residential’s real estate
predicament: Few agents but four offices
Compass CEO Robert Reffkin has said the firm intends to double its footprint in New York this year. Last year, the growing brokerage raised $450 million from Softbank, a deal that will supercharge that growth. Following the investment, Compass was valued at $2.2 billion.
Earlier this month, the firm added 32,000 square feet at 10 East 53rd Street, where it now occupies 49,000 square feet.