Meal-Kit Service More Than Quadrupling Footprint In 92K SF Midtown South Lease
A prepared meal-kit delivery company is more than quadrupling its headquarters footprint in Midtown South as the demand for at-home meal kits soars amid the coronavirus pandemic.
Freshly inked a 92,300 SF lease on the 12th and 13th floors at 63 Madison Ave., George Comfort & Sons announced. Asking rent was between $85 and $100 per SF and the lease runs for 12-and-a-half years, sources familiar with the deal told Bisnow.
George Comfort & Sons owns the building with Jamestown and Loeb Partners Realty. The deal comes after the ownership team completed renovations on the Class-A office building, including a new lobby, terrace and 60K SF retail space that Whole Foods is set to occupy. The tenant will move from First Pioneer Properties' 115 East 23rd St. nearby, where it currently takes up around 20K SF.
Freshly was valued at an estimated $950M when it was bought by Nestlé in October 2020, The Wall Street Journal reported. It will have a private, outdoor space on the 13th floor in its new digs.
The big lease comes amid a sluggish office leasing market and as the share of technology, advertising, media and information companies offering their space on the sublet market is increasing.
Before the pandemic hit, space being offered by TAMI companies was at 31.6%, according to Savills. Since the pandemic took hold, that share has increased to 41.8%.
“With renovations just completed at the building, this transaction is evidence that our modernization program and flexible offerings will attract top-tier tenants going forward,” George Comfort & Sons President and CEO Peter Duncan said in a statement.
