WeWork Expands Presence in NYC
- Nov 13, 2018
Winter Properties LLC is adding WeWork Cos. Inc. as its sole tenant at 57 E. 11th St., a 61,375-square-foot office building in Manhattan’s Greenwich Village.
JLL facilitated the 15-year lease for the boutique office space on behalf of the property’s owner. Under terms of the deal, WeWork will occupy the ground floor through the 11th floor of the building.
“It was important because the entire asset was leased in a short period of time,” Alexander Chudnoff, a vice chairman at JLL, told Commercial Property Executive. “The building has gone through a spectacular renovation that included literally every component except for the façade, so it is effectively brand new.”
There is a retail component on the ground floor included in the deal, but WeWork has not yet decided what they are going to do with that space.
Enhanced through redevelopment
Although it had owned the property for many years prior, it was back in 2017 when Winter Properties, a related business of Standard Industries, started redeveloping the 1903 vintage property, hiring Morris Adjmi Architects to design the project and bringing in JLL to lease the building.
“It’s been in their portfolio of buildings for decades, and previously it had multi-tenanted floors and even had a live/work component where there were people residing inside on the top two floors,” Chudnoff said. “It was receiving income but not getting any real value. The market has grown a great deal and there’s not a lot of office property within the market.”
The redevelopment included renovations to the lobby and storefront, windows, restrooms, building infrastructure, plus the addition of new elevators and a roof top terrace.
The building’s office floors boast high ceilings and bright, open floors plans with opportunities for enclosed perimeter offices and central open kitchen and pantries.
Located between Broadway and University Place, the property is situated on a tree-lined street in the heart of Greenwich Village. The neighborhood includes popular restaurants like ABC Kitchen, Union Square Café, Casa Apicii, Corkbuzz, Gotham Grill, Blue Water Grill, Il Cantinori and Strip House. The building is also close to four fitness clubs and premier residential developments.
According to Chudnoff, 57 E. 11th St. quickly became one of the most desired boutique office buildings in Midtown South, as the property now features state-of-the-art office and retail space.
“Being in that University Place area, south of Union Square in the heart of the Village, it’s a different dynamic than Midtown South,” he said. “It’s very high-end residential, beautiful pre-war assets with a lot of restaurants. It’s not a big office product.”
Joining Chudnoff in representing the building’s owner were Jonathan Fanuzzi, executive vice president and Kip Orban, a JLL associate, along with Jay Stark, Winter Properties’ COO and Scott Milsom, the company’s director of development and operations. Meanwhile, the lessee was represented by Bruce Mosler, Cushman & Wakefield’s chairman of global brokerage and Ethan Silverstein, the firm’s vice chairman.
“The absolute commitment and focus to delivering not just a renovated product, but a top-tiered renovated product is great for the vicinity and was also able to get great concerns economically,” Chudnoff said.
In October, WeWork leased 115,000 square feet, the entire office portion at 149 Madison Ave., a 12-story Midtown South building owned and being renovated by Columbia Property Trust.
Image courtesy of JLL