OnDeck Expands its Space at ESRT’s 1400 Broadway
- Mar 12, 2015
OnDeck Capital, Inc., a tenant at Empire State Realty Trust, Inc.’s 1400 Broadway in the hot Times Square South submarket of Manhattan has grown for the second time, adding 79,000 square feet of space to become one of the building’s largest tenants with about 117,000 square feet.
The online lender for small businesses has had its headquarters at 1400 Broadway since 2012, when it leased about 21,000 square feet. With the expansion, OnDeck will be occupying 4 ½ floors of the 37-story, 908,237-square-foot building.
“We are delighted that our existing relationship with OnDeck gave us the opportunity to accommodate their significant expansion at 1400 Broadway,” Thomas Durels, ESRT’s executive vice president, director of leasing and operations, said in a news release.
Paul Ippolito of Newmark Grubb Knight Frank represented OnDeck in the negations. The landlord was represented by Keith Cody of ESRT, along with Scott Klau, Erik Harris and Neil Rubin, all of Newmark Grubb Knight Frank.
Durels told Commercial Property Executive that OnDeck joins Kohl’s, which has its New York headquarters there, and The Interpublic Group of Companies, one of the world’s leading organizations of advertising and marketing services companies, as the largest tenants in the building. Other tenants include VeriFone Systems, Hatch Mott MacDonald and corporate offices for Burlington Coat Factory.
In recent years, the pre-war building in the city’s former Garment District has been upgraded and transformed into a modern office building with high-tech and energy efficient building systems to attract corporate tenants. Durels said capital improvements included a redesigned lobby, new elevators and building façade, including windows and roof, and renovated public spaces.
Durels said similar upgrades have been made at the REIT’s other Broadway corridor buildings – 1333 Broadway, 1350 Broadway 1359 Broadway. In Manhattan, ESRT also owns the Empire State Building, 112 W. 34th St., 501 Seventh Ave., One Grand Central Place and 250 W. 57th St. In the Broadway corridor between 35th and 40th streets, Durels said ESRT is the dominant landlord, controlling about 2 million square feet of space.
He said rents at 1400 Broadway range from $59 to $67 per square foot and have increased over the past 12 months. Durels said ESRT will be creating several full-floor availabilities over the next two years as older leases turn over. The REIT is currently marketing a 35,000-square-foot penthouse space that includes a 1,000-square-foot terrace at $67 per square foot.
Times Square South has grown as a submarket in recent years as more corporate tenants displaced the Garment Center companies. The midtown location is convenient to Penn Station, Grand Central Station, the Port Authority Bus Terminal and several major subway lines.