New York REIT to Acquire Twitter HQs in Manhattan for $335M
- Aug 01, 2014
New York REIT Inc. has entered into a purchase and sale agreement to acquire Twitter’s 282,000-square-foot East Coast headquarters in Manhattan for a reported $335 million from Savanna.
Located at 245-249 W. 17th St., in the Chelsea neighborhood, the property consists of a 12-story office tower and an adjacent six-story mixed-use building. Twitter has a 214,765-square-foot lease that expires in 2025. Additionally, Room & Board Inc. occupies the retail portion of the building; Flywheel Sports Inc. is also a tenant.
“The fact that Twitter, one of the world’s most prestigious technology firms, chose this property as its New York headquarters demonstrates the importance of this location and further testifies to the institutional quality of the property itself,” Michael Happel, NYRT’s president, said in a company release. “We are confident that these buildings—located in New York City’s epicenter of creativity, technology and style—will add significant value to our growing, first-class Manhattan property portfolio.”
Constructed in 1902 and 1909, the buildings underwent $29 million in renovations after Savanna purchased them in 2012. It added added new lobbies, brand-new state-of-the-art building systems, windows, elevators and a stunning rooftop terrace that overlooks the Hudson River.
According to Brian English, director of research for Colliers International NY, Class A office space in Midtown South is going for an average rent of $67.16 a square foot, as technology companies like Facebook Inc., EBay Inc. and International Business Machines Corp. have entered the market. Rents in the Twitter headquarters average $70.38 per square foot.
The seller was represented by Adam Spies and Doug Harmon of Eastdil Secured L.L.C.