Fintech Company Subleases 35 KSF in Manhattan
X Corp., formerly known as Twitter, previously leased about 215,000 square feet at the property.
Fintech company MoneyLion Inc. has subleased 35,384 square feet at 245-249 W. 17th St., Columbia Property Trust’s 281,000-square-foot office property in Manhattan. The space, representing the asset’s entire fourth floor, previously housed X Corp., formerly known as Twitter. CBRE represented the sublandlord, while Cornerstone Realty and Olmstead Properties worked on behalf of the new tenant.
In 2018, the social network company signed a five-year lease extension for about 215,000 square feet at the property, prolonging the agreement’s expiration date until April 2030. Last March, the firm listed about 200,000 square feet up for sublease to cut costs, according to The Real Deal.
The CBRE team comprised Executive Vice President William Iacovelli, Vice Chairs Sacha Zarba and Lauren Crowley Corrinet, Vice President Elliot Bok and Associate Connor DeSimone. Cornerstone Realty Principal Eric Ladden, together with Olmstead Properties Associate Jason Birk and Executive Managing Director Steve Marvin represented MoneyLion Inc.
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Columbia Property Trust acquired the two-building asset in 2017 in a portfolio transaction that also included an adjacent 165,670-square-foot office building at 218 W. 18th St., CommercialEdge information shows. New York REIT sold the properties for $514.1 million.
In September 2021, Columbia agreed to be taken private by PIMCO in a $3.9 billion deal. One month earlier, the firm took out a $1.7 billion CMBS loan that also involved the 245-249 W. 17th St. property, the same source shows. The company defaulted on the loan last February.
From industrial to office
The property consists of two interconnected buildings of 12 and six stories that came online as industrial facilities in 1902 and 1909, respectively. In 2014, the warehouses were converted to office use following a $29 million capex plan, according to Real Estate Weekly. Savanna, the owner at the time, created new lobbies, HVAC systems, elevators and restored the façade and roof. The property is now LEED Gold certified.
Connected through the cellar and the fourth, fifth and sixth floors, the buildings feature more than 66,000 square feet of retail space. Tenants include Netflix, Lyft and Flywheel, CommercialEdge information shows.
The transit-oriented property is in the Chelsea neighborhood, less than a mile from Flatiron Building and 16 miles from John F. Kennedy International Airport. The buildings are also within walking distance of a 211,312-square-foot office asset that changed hands last year for $80 million.
Recent office leasing deals in Manhattan
At the beginning of January, DoorDash doubled its space at 200 Fifth Ave, an 860,000-square-foot high-rise, committing to 115,382 square feet. The 1909-completed building is owned by BXP, formerly known as Boston Properties, and J.P. Morgan Global Alternatives.
A few days later, a partnership between Trinity Church Wall Street, Norges Bank Investment Management and Hines signed a 150,000-square-foot lease renewal and expansion with jewelry brand David Yurman. The company has been a tenant at the building since 2002, when it first leased 65,000 square feet.
According to the latest CommercialEdge office report, Manhattan’s listing rate as of last month clocked in at $68.3, almost double the $37.4 national average. The market’s vacancy rate was 16.5 percent, 150 basis points lower than the national figure.
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