A rapidly expanding fintech firm is gobbling up even more office space in Williams Equities’ 28-40 W. 23rd St.
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Ramp has signed an expansion deal at the historic Flatiron District property for 175K SF, bringing its total footprint inside the 12-story, 575K SF property to 460K SF, the landlord announced.
The company is weeks removed from raising more than $1.8B at a $60B valuation, explosive growth after being valued at $44B in June and $16B last year. Its Manhattan headquarters has grown apace — Ramp first moved into the building in 2023 and expanded by 66K SF the following year.
It expanded by 153K SF in March and, with this latest lease, now occupies floors six through 12.
“Ramp’s commitment to 28-40 West 23rd Street reflects our continued investment in trophy-quality, pre-war Midtown South assets that have attracted the city’s leading technology companies and consumer brands including Netflix and DAZN," Michael Cohen, a principal at Williams Equities and president of Colliers' Tri-State region, said in a statement.
Cohen, along with Colliers colleagues Andrew Roos, Mac Roos, Rachel Kirkham and Jessica Verdi, represented building ownership in the deal. CBRE’s Ryan Alexander, Jared Isaacson and Jeff Frenkel represented the tenant.
The combined building was once a Stern Brothers department store, with 40 W. 23rd St. built in 1879 and 28 W. 23rd St. built a couple of decades later in 1901, according to its website.
TOP LEASES
Industrial Color inked a 59K SF lease expansion and renewal at Rudin’s 27-story 32 Sixth Ave., which it has called its home since 2006, according to a release. The creative production company expanded by 12K SF and renewed its existing 47K SF, taking up the entire 22nd floor and part of the 20th. Newmark’s Paul Ippolitto and Kyle Wainwright represented the tenant, while Rudin’s Robert Steinman and Craig Panzirer represented the landlord in-house. Other tenants include Verizon Communications, Lumen Technologies and Coresite.
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Dolce & Gabbana is moving its NYC headquarters to a 21K SF office space at The Feil Organization's 551 Fifth Ave., according to a release. The famed fashion house had representation from Cushman & Wakefield’s Louis D’Avanzo, Owen Koorbusch and John Fitzsimons in the long-term deal for the property’s entire ninth floor. Andrew Wiener, Tim Parlante and Kevin Driscoll represented the landlord in-house.
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Mphasis, a Blackstone-backed information technology firm, doubled its footprint with a 14K SF expansion at Rudin’s 41 Madison Ave., CoStar News reported. The company has been at the 42-story Flatiron District building since April 2021, after relocating from 460 Park Ave. S. via a 14K SF sublease deal with Mission Capital Advisors, Commercial Observer reported. Its total footprint is now 28K SF. CBRE’s William Iacovelli and Patrick Moroney repped Mphasis, while Robert Steinman and Craig Panzirer repped Rudin in-house.
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Tishman Speyer signed nonprofit Pursuit Transformation Co. Inc. to 41K SF at The JACX, its 700K SF office complex at 28-07 Jackson Ave. in Long Island City, according to a release. The nonprofit’s New York headquarters is moving to JACX's entire 14th and 15th floors from its current location, listed as 47-10 Austell Place, according to public records. The landlord was represented in-house by Megan Sheehan, while Newmark’s David Falk and Daniel Levine represented Pursuit.
TOP SALES
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Aurora Capital Associates acquired a retail condominium and 55 unsold residential condo units at 609 Second Ave. from Leser Group and Horizon Group for $55.7M, PincusCo reported. Leser and Horizon bought the site for $26.5M and developed the building, which has a total of 65 residential units and 3K SF of retail space. BKREA’s Bob Knakal, Jas Saini and Nick Tuleu worked on behalf of the sellers, The Real Deal reported in September. The deal closed Oct. 8 and hit property records Monday, according to PincusCo.
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Legion Investment Group is likely piecing together another assemblage, PincusCo reported. Victor Sigoura’s firm acquired 1497 Third Ave. for $12.5M from SMA Equities and added on $17M worth of air rights in two deals: $9M to Solil Management for the space above 1505 Third Ave. and 206 E. 85th St., plus an $8M deal with McDonald's Corp. for the air rights above 1499 Third Ave. Public filings indicate that two additional lots are in contract to sell and that Legion is planning to acquire air rights from at least one more tax parcel, according to PincusCo.
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Haussmann Development bought two Crown Heights properties from Jose Pereira’s Grand Avenue Investment Group LLC, Crain’s New York Business reported. Haussmann paid $21M for 566 Grand Ave. and 836 Dean St., and the firm’s founding principal, Josef Goodman, has filed plans with the NYC Department of Buildings for a 12-story, 99-unit building at 566 Grand Ave.
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Tishman Speyer flipped 148 Lafayette St. for $132.5M, 14 months after making the 12-story SoHo building its first post-pandemic NYC office buy. Tishman paid $105.5M last June, then fully leased the 113-year-old building to tenants including Charlotte Tilbury and AI firm Graphite. Shorenstein Properties is the buyer in the deal that, “after accounting for contractual credits at acquisition and sale,” represented a 41% gain, according to Tishman. Newmark's Adam Spies and Avery Silverstein represented the seller in the deal.
TOP FINANCING
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SL Green and Mori Trust closed on their $2B CMBS refinancing of 245 Park Ave. The new debt from JPMorgan Chase, Bank of America, Deutsche Bank, Bank of Montreal, Goldman Sachs, Citibank and Societe Generale paid off nearly $1.8B in existing debt, funded $226.6M in landlord obligations and paid $37M in closing costs, according to Fitch Ratings. SL Green and Mori chipped in $31.6M of cash to seal the deal. The REIT bought the building out of bankruptcy in 2022, then sold a roughly 50% stake to Mori in 2023 at a $2B valuation.
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ZD Jasper netted a $90.8M condo inventory loan from Derby Copeland Capital for the two-tower Vita development in Hell’s Kitchen, The Real Deal reported. The new debt for the project, at 499 and 501 Ninth Ave., refinances a $117.5M construction loan provided by Maxim Capital Group in 2023. The 11- and 12-story buildings have 121 apartments across 107K SF of residential space, 20 of which have already sold. The condo loan is secured by 85 units. The building also has 17K SF of commercial and community facility space.
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Avery Hall Investments refinanced its 128-unit Gowanus apartment building at 274 Fourth Ave. with a $95M sum from KKR, PincusCo reported. The loan on the 125K SF property replaces a $72.5M mortgage from TD Bank.
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