Surging collaborative-space provider WeWork is on the brink of landing its largest base of operations yet in Manhattan. The fast-moving, game-changing outfit is in advanced negotiations to take all 300,000 square feet of Rudin Management’s hurricane-damaged 110 Wall St., sources tell Realty Check.
The impending deal represents a milestone for landlord and tenant.
WeWork already has space at five other Manhattan addresses including at L&L Holding Co.’s 222 Broadway, where it signed for more than 120,000 square feet last winter.
WeWork is also at 349 Fifth Ave., 175 Varick St. and 261 Madison Ave. — but 110 Wall St. would be the first location where it’s claimed a whole building.
The tower at the corner of flood-ravaged Front Street was so damaged by Hurricane Sandy that Rudin Management CEO William Rudin had to cancel all the office leases in the interest of not leaving tenants in long-term limbo.
Speculation was rampant that the 1964-vintage tower would be converted to apartments once the damage was fixed, and Rudin said at the time it was among the options under consideration. But that idea is dead.
There was no word on what WeWork would pay or how a transaction would be structured — whether as a regular lease, a netlease, or as a partnership. Nor was it clear how soon WeWork could take possession once a deal is finalized.
But sources confirmed it’s well along. “It could be a few weeks or a few months, but everyone on both sides is very excited,” an insider told us.
Rudin Management, which owns the now-vacant 27-story tower, declined to comment. WeWork real estate director Mark Lapidus didn’t get back to us.
WeWork, founded in 2010 by Adam Neumann and Miguel McKelvey, also has locations in Los Angeles and San Francisco and is setting up shop in Boston as well.
The firm doesn’t rent office space on a traditional long-term basis, but calls itself a “physical social network” that offers “members” a 30-day, month-to-month availability.
The arrangement suits many startups and “incubators” in the high-tech, new media and creative fields, as well as emerging entrepreneurs and free-lancers.
That fast-growing tenant pool has become increasingly in demand in a market where traditional users of large blocks of space, especially on Wall Street, have been cutting back.
“It’s part of the overall space-compression phenomenon, which is giving some developers and landlords fits, while the smarter ones see what’s going on and are adapting to the new reality,” said a broker who asked not to be named.
Users’ monthly costs for a WeWork facility include tax and utilities. Spaces can be custom-tailored for users, who may want anything from traditional offices with locks to all-common areas without even cubicles.
The Boston Globe reported that WeWork charges $400 a month for a single “dedicated desk” in San Francisco.
WeWork provides furniture suited to open-plan seating, high-speed Internet, conference-room access and amenities including “fun additions” such as meditation rooms, pool tables and even beer kegs.
Space-takers can even avail themselves of health-insurance plans arranged by WeWork representatives — although how that plays out under ObamaCare remains to be seen.
–
Things are finally stirring at 740 Madison Ave., the long-vacant Wildenstein mansion at East 64th Street.
The Wildenstein family has filed plans with the Dept. of Buildings to renovate and convert the five-story, former commercial building to a mix of commercial and residential.
The 1879-vintage, Neo Grec (think “Greek Revival”) in Neo-French Renaissance style is notable for angled window bays above long-dark storefronts.
“It’s a very prominent location, and we’re glad to see things moving along,” said Madison Avenue BID president Matthew Bauer, adding, “It’s been empty too long.”
Because the mansion stands in the Upper East Side Historic District, any facade alterations must be approved by the Landmarks Preservation Commission. An LPC spokesperson said no application had yet been filed.
David Wildenstein, one of the owners whose name appears on the DOB filing, did not respond to an e-mail seeking comment.
–
Office prebuilt units with lots of amenities and high-end finishes are the rage. At LeFrak’s 40 W. 57th St., more than half of 50,000 square feet of prebuilts on the 14th and 15th floors are already spoken for before the units are even built.
In the largest of four leases, Gruss Asset Management took a 13,500 square-foot prebuilt. PSQ Capital, TSE Capital and CMDTY Capital are the other new tenants.
CBRE’s Howard Fiddle, who leads the tower’s leasing team, said three prebuilt suites remain available from 4,000 to 13,500 square feet.