Newmark Completes Three Nonprofit Leases at 23 West 20th in Flatiron Submarket; Building Now Fully Leased

April 26, 2022 12:30 PM

Newmark announces it has leased the entirety of 23 West 20^th Street, totaling approximately 50,196 square feet, to three related nonprofit tenants. Newmark President of New York Tri-State Region David Falk, Executive Managing Director Eric Cagner, Managing Director Alex Leopold and Director Jordyn Comras served as exclusive leasing advisors for the property and represented the ownership, Skyway Development and The Kash Group in the transactions.

The three nonprofits that will lease the building, Felicity House, Foundations for a Just Society and the AC&JC Foundation, were previously co-located at a townhouse on 22nd Street. The groups sought an office environment in the same neighborhood where they could have their own space in a unique and comfortable setting. Felicity House will lease 24,375 square feet on the fifth through seventh floors, Foundations for a Just Society will lease 21,517 square feet on part of the second and entire third and fourth floors, and the AC&JC Foundation will lease 4,304 square feet on the second floor.

Located in the heart of the Flatiron District, 23 West 20^th Street is a unique office building that was formerly a parking garage before being converted to a first-class commercial office property. To provide a vision for prospective tenants, ownership built out one floor that showcased the building’s exceptional attributes, such as exposed brick, exposed cross beams, original restored windows and open exposed ceilings. While the new tenants will build out their own spaces, the model floor was a primary draw in their decision to relocate to the building.

“The full-floor pre-build enabled the character of the building and its exclusive features to blend with a modern installation that resulted in an offering that was distinct amongst its peer class,” said Cagner. “It was great to work through the nuances of three independent leases simultaneously and come away with new spaces for these meaningful and important foundations to call home.”

While the Newmark leasing team had immediate interest from various tenants early on, they kept sight of how the building could be an excellent opportunity for a single user group that wanted to be in the heart of the Flatiron submarket.

23 W 20^th Street is located between 5^th and 6^th Avenues, offering proximity to Union Square and Madison Square Park and amenities including Whole Foods, Shake Shack, the Farmer’s Market at Union Square, Eataly, Union Square Café, Oceans and Gramercy Tavern. The building is proximate to the 4, 5, 6, B, D, F, L, N and R subway lines as well as the PATH trains.

“This transaction is a validation of the strength of the Flatiron / Union Square neighborhood,” said Leopold. “Companies and foundations want to be in neighborhoods like this one that offers a great balance of food, hospitality and community.”

Midtown leasing velocity in the fourth quarter of 2021 totaled 5.5 million square feet, an increase of 15.7% from the third quarter, according to Newmark Research. This marks the highest total since the fourth quarter of 2019. Activity was also just above the 10-year quarterly average of 5.5 million square feet, propelled by three large renewals. Midtown average asking rents increased by 6.1% quarter-over-quarter to $82.79 per square foot, the highest level in five quarters.

The tenants were represented by Carri Lyon and Mark Mandell of Cushman & Wakefield. Counsel for ownership for the transaction was David Mashaal.

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.9 billion for the year ending December 31, 2021. Newmark’s company-owned offices, together with its business partners, operate from approximately 160 offices with over 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

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