There is new management overseeing the first ground-up office development in Brooklyn in 40 years, and it announced its arrival with a major lease.
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Israeli billionaire Eyal Ofer’s Global Holdings Group is now the primary manager at 25 Kent, the 500K SF, eight-story office building developed by Heritage Equity Partners and Rubenstein Partners, according to a release.
Ofer's firm made a $100M preferred equity investment in the project in 2018 while it was still being developed, Commercial Observer reported at the time. Now in the driver's seat, Global Holdings signed Queen One, a tech and commerce company, to a 10-year lease for 30K SF at the building.
“As longtime investors in 25 Kent, we’re excited to now take the lead on the building’s next chapter as we celebrate this significant lease signing in the Brooklyn office market,” Global Holdings Senior Vice President and Director of Leasing Craig Panzirer said in a statement. “Our focus is on investing in new capital improvements and positioning the building as a hub for the next generation of creative and tech innovators.”
The building was just 54% leased a year ago, Crain’s New York Business previously reported, more than five years after it completed construction. Other tenants in the building include events company La Sirena, Amazon Music, bathhouse Othership and AI company Altana.
While Heritage and Rubenstein co-developed the project, by 2022 when Apollo Commercial Real Estate Finance refinanced its 2016 construction loan with a $178M debt package, Rubenstein appeared to be in charge and Heritage was no longer mentioned as a partner. Heritage, run by Toby Moskovits, saw many of its deals blow up during the pandemic, including losing the Williamsburg Hotel via bankruptcy.
Rubinstein Partners could not be reached for comment by press time, but a spokesperson for Global Holdings told Bisnow that it is still involved with the building despite the management switch-up.
Global Holdings didn’t immediately respond to Bisnow’s request question about the building's current occupancy. But part of the company's management plan is to introduce prebuilt office spaces ranging from 3K SF to 11K SF to attract new tenants. The spaces are expected to be delivered by September.
Global Holdings was represented in-house in the deal by Panzirer and Alex Radmin. It has brought in Newmark' Ryan Gessin, Will Grover and Jordan Gosin as the building’s new leasing team.
Queen One was repped by Scott Bogetti and Will Demuth of Savills. Its lease was supported by a $6M performance-based tax credit as part of an Empire State Development program designed to create job commitments, according to a release from Gov. Kathy Hochul’s office. Queen One expects to employ 600 people over the next five years at its new Brooklyn headquarters, Hochul announced.
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