An architectural rendering of the proposed entrance to One World Trade Center on Fulton St. (Tower I Joint Venture LLC)
With a focus on growth and new opportunities, KiDS, a creative branding ad agency, has signed a 15-year lease at One World Trade Center. It has been three years since Condé Nast decided to relocate to the tower, as did the U.S. General Services Administration. Beijing Vantone was the first tenant to sign a lease in 2010 for the opening of its China Center.
“I was inspired by the construction of One World Trade Center since the whole of New York hasn’t changed much over the years,” Pascal Dangin, founder, CEO and chief creative officer, said in an interview. “Out of tragedy—what we do best—is rise to a new level.”
KiDS is an offshoot of Box Studios, a digital arts finishing company, founded by Dangin. KiDS and Box Studios will occupy the entire 87th floor, 35,000 square feet, at 1 WTC, relocating from a 22,000-square-foot space at 412 W. 14 St. KiDS will begin the process of designing the new space on Aug. 1.
One World Trade Center, which spans more than 3 million square feet, is a joint venture partnership of the Port Authority of New York and New Jersey and The Durst Organization. The iconic tower is the tallest building in the Western Hemisphere, with 90 floors of office space and mechanical spaces, and observation decks from the 91st floor to 104th.
Lawrence Lenzner, a partner at Patterson Belknap Webb & Tyler, represented Durst.
Michael Greenberg, a partner at KLG Luz & Greenberg, and Ronnie Reiman, counsel, represented KiDS.
The rate for middle floors at 1 WTC reportedly dropped to $69 per square foot while the asking rents for the upper floors, the 64th floor and higher, are $80 to $100 per square foot. Building incentives include sales tax exemption and abatement for costs of initial construction, renovations and expansion, and commercial tax abatement.
KiDS, which stands for “knowledge in design and strategy,” was founded last year. Dangin, an artist who made his name in the late 1990s through retouching digital images, has worked with fashion photographers and art directors. He has expanded his scope to the film industry and has worked on movie trailers, broadcast commercials and ads and collaborates with international photobook publisher Gerhard Steidl. In May, KiDS received the CLIO 2014 Grand Prix Award for Print.
Dangin said he was drawn to lower Manhattan by the “modern way” in which the area is being built. “It’s like a new mold, representing change” and a good fit for the cutting-edge branding agency, he said.
The additional space is an “opportunity to grow the company, hire more people, and create more business opportunities,” said Dangin, who has a number of international fashion clients, including Alexander Wang, Balenciaga, Alexander McQueen and Dolce & Gabbana.
Dangin said another appeal was the style of the space. Unlike a massive space in a commercial office building, the “upper floors” of 1 WTC are more akin to “loft spaces” on a more “human scale,” and “you no longer hear the sound of the city.”
“KiDS and 1 World Trade Center make a perfect match,” Durst’s Eric Engelhardt, director of leasing for 1 WTC, said in a statement. The agency is an “ideal complement to Condé Nast.”
Durst’s lease was handled in-house by Engelhardt, who was assisted by Alan Stein, an executive director in Cushman & Wakefield’s brokerage group. Cushman’s Tara Stacom, executive vice chairman, is also responsible for leasing at 1 WTC.
New York University Hospitals Center has acquired SL Green Realty Corp.’s leasehold interest in 673 Third Ave. for $145 million.
The 422,000-square-foot, 12-story office building stands at the northwest corner of 38th Street, adjacent to NYU Langone Medical Center’s main campus. Parties declined to comment on the negotiations that took place over the course of 18 months.
NYU Hospitals is already a tenant of the building. In 2007, it increased its square footage to 159,631 square feet under a 20-year lease to create a state-of-the art outpatient surgical center. Together with New York Presbyterian Hospital and NYU School of Medicine, it occupies 80 percent of the building.
Andrew Weiner and Eddie Frastai, partners at Dentons; Gregory Fennell, senior managing associate; and Keith Londo, a Chicago-based partner, represented the tenant. Sheila Eisenberg, associate general counsel at NYU Langone Medical Center, was in-house counsel on the deal.
SL Green was represented by a legal team led by Jonathan Mechanic and Janice Mac Avoy, partners at Fried, Frank, Harris, Shriver & Jacobson. Andrew Levine, SL Green’s chief legal officer, and Neil Kessner, executive vice president, general counsel, internally handled the deal.
Mark Sugerman, counsel at Olshan Frome Wolosky, and partner Thomas Kearns, represented the ground lessor, 673 First Avenue Associates, an investment group. Sugerman handled an amendment to the ground lease and Kearns was responsible for NYU’s condominium proposal for tax exemption. In addition, David Calabrese, a partner at Haynes and Boone, represented the investment group.
Cushman & Wakefield’s Mark Mandell, executive director; Bruce Mosler, chairman of global brokerage; David Heller, director, corporate finance and investment banking, capital markets; and Michael Rotchford, executive vice president, capital markets and president of Cushman & Wakefield’s Securities Inc. represented NYU Hospitals Center.
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