Edison Properties finally got the call it’s been waiting for at a vacant Hell’s Kitchen property.
Verizon signed a 144,000-square-foot lease at Edison subsidiary HLP Properties’ 620 12th Avenue, Crain’s reported.
The lease, which appears to be for the entire four-story building, is for 48 years and will cost Verizon $50 million. It was the largest new commercial lease in the city last month.
It’s not clear how Verizon will use the space, though it will likely serve a commercial function. The property is zoned for manufacturing, but hasn’t been used much in recent years. It was used to store surgical masks donated during the height of the pandemic.
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Edison bought the property, between West 47th and West 48th streets, in October 2015 for $55 million from longtime owner Yale Citrin of Rye Brook. Tenants at the time included a video equipment rental company and an elevator and escalator manufacturer.
Edison had more bandwidth to focus on the property after selling Manhattan Mini Storage. StorageMart agreed last year to acquire the self-storage business and its 18 facilities for more than $3 billion. Edison had been working with Eastdil Secured since last August to find a buyer.
Verizon has been behind a flurry of moves in recent months, including some in the industrial sector. The company purchased a warehouse at 325 Exterior Street in Mott Haven early this year for $75 million. Verizon had been renting the 26,000-square-foot space from David Lichtenstein’s Lightstone Group.
Verizon also plans to relocate hundreds of employees to the Essex Crossing development on the Lower East Side. The company leased nearly 143,000 square feet at 155 Delancey Street. The 20-year lease includes an option this year for Verizon to take more space. Asking rents ranged from $80 to $130 per square foot.
— Holden Walter-Warner