1330 Avenue of the Americas (Disposition)
767 Fifth Avenue (Acquisition)
Welltower, Inc. (NYSE: WELL), a $33 billion REIT based in Toledo Ohio was looking for a NYC satellite office to house its growing team. As the space would be a showcase for the company and house its senior executives, WELL had a long list of “must haves” including a full kitchen with working stove, collaborative areas, conferencing suite with various meeting room sizes, executive offices, and high-end finishes, all within a building that reflects the prominence of the firm.
A tight timeline, budget, layout, and geographical parameters were set by the executive team.
WELL tapped Spaces Commercial Real Estate to develop a go to market strategy and lead the search.
- Interviewed stakeholders within the firm to understand Welltower’s business goals
- Translated goals into a space program and workplace strategy to accommodate for current and future occupancy needs
- Evaluated all single and multi floor built on-market spaces within Trophy Plaza District assets. Direct and sublease space opportunities were thoroughly vetted
- Began a campaign to identify off-market sublease opportunities
- Identified potential city and state incentives for growing financial services firms
- Evaluated prospective landlord and sublandlord dynamics to develop negotiating strategy
- Analyzed default risks for all sublease opportunities to mitigate risk
Executed a 28,656 RSF five year fully furnished lease assignment at the GM Building (767 Fifth Avenue)- one of the most prestigious addresses in NYC.
- Negotiated a complex lease assignment mitigating any default risk by the Assignor
- WELL received an upfront payment of $9m+ to cover the rental spread between Assignor and Assignee’s rent
- Average rental rate was over 50% below the asking rent for the building and one of the most economical transaction in the history of the GM building.
- Secured 3 months of free rent on a five-year lease term
- Negotiated a tenant improvement allowance sufficient to modernize the space
Executed a 6,314 RSF sublease of WELL’s space at 1330 Avenue of the Americas
- Secured a credit tenant to sublease the entire space for the remainder of the lease term
- Aligned both the signing of the sublease and sublease commencement to dovetail with the signing and commencement of the 767 Fifth Avenue space.