{"id":1004736324,"date":"2024-11-07T03:58:09","date_gmt":"2024-11-07T11:58:09","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004736324"},"modified":"2024-11-12T08:52:20","modified_gmt":"2024-11-12T16:52:20","slug":"nyu-to-lease-1-1-msf-at-vornados-770-broadway","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/nyu-to-lease-1-1-msf-at-vornados-770-broadway\/","title":{"rendered":"NYU to Lease 1.1 MSF at Vornado Property"},"content":{"rendered":"\n

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\n
\"NYU<\/a>
NYU has agreed to master lease 1.1 million square feet of office space at Vornado\u2019s 770 Broadway. Image courtesy of CommercialEdge<\/em><\/figcaption><\/figure><\/div>\n\n\n

With Meta Platforms set to leave 770 Broadway in Manhattan\u2019s East Village early next year, New York University has agreed to master lease the entire 1.1 million square feet of office space at Vornado Realty Trust’s 14-story mixed-use building.<\/p>\n\n\n\n

Under a letter of intent, NYU has an option to buy the office space in the 30th year and the 70th year of the lease.<\/p>\n\n\n\n

\u201cBoth parties have signed a detailed letter of intent and expect to execute final binding papers shortly. I expect the closing and rent commencement would occur in January,\u201d Vornado Chairman & CEO Steven Roth said during Tuesday\u2019s third-quarter earnings call with analysts. \u201cThe master lease will provide for an upfront payment of prepaid rent sufficient to pay off our $700 million loan on the property, as well as an annual net rent over the lease term.\u201d<\/p>\n\n\n\n

Further details about NYU\u2019s plans for the office space were not disclosed but the private university is one of the city\u2019s largest and wealthiest landlords with more than 100 properties in Manhattan and Brooklyn.<\/p>\n\n\n\n

\u201c770 Broadway is an exciting and important development, critical to fulfilling NYU\u2019s bold aspirations in science and tech, and important because of its proximity to our campus core\u2019s science facilities. We look forward to finalizing this transaction and then sharing more about our plans,\u201d John Beckman, NYU spokesperson, told Commercial Property Executive.<\/em><\/p>\n\n\n\n

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READ ALSO<\/strong>: What\u2019s In, What\u2019s Out in Office Design?<\/a><\/p>\n\n\n\n

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Roth first hinted at a major upcoming deal during the firm\u2019s August second-quarter earnings call. At that time, he said they had a \u201chandshake deal\u201d with an unnamed tenant to master lease all the office space.<\/p>\n\n\n\n

Building spotlight<\/h2>\n\n\n\n

Meta, parent company of Facebook, Instagram and other social media apps and a tenant at the building since 2018, had at one point leased about 775,000 square feet but currently leases 500,000. Earlier this year, Meta announced it was cutting 225,000 square feet of space there as of June. In July 2022, the social technology giant halted plans to expand space at 770 Broadway<\/a> and in the Hudson Yards development on Manhattan\u2019s Far West Side as it reduced office space at numerous sites around the country amid layoffs.<\/p>\n\n\n

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\"\"<\/a>
770 Broadway in Manhattan\u2019s East Village. Image courtesy of CommercialEdge<\/em><\/figcaption><\/figure><\/div>\n\n\n

Vornado has owned the building since acquiring it in 1998 for $149 million. Completed in 1906, the building takes up an entire block between Ninth Street on the north, Fourth Avenue to the east, Eighth Street to the south and Broadway to the west. Vornado completely renovated the LEED Gold-certified property, located on 1.4 acres, in 2000.<\/p>\n\n\n\n

The property’s most current debt, a five-year $700 million loan from a private lender, was originated in July 2022 and is set to mature on July 1, 2027, according to CommercialEdge data.<\/p>\n\n\n\n

The building has more than 166,000 square feet of retail including a Bank of America on the street level. Wegmans Food Markets occupies two levels\u2014a lower level and street level\u2014totaling about 87,500 square feet.<\/p>\n\n\n\n

Vornado\u2019s leasing activity<\/h2>\n\n\n\n

In late September, Vornado announced accounting firm Weaver and Tidwell LLP had significantly expanded its space at PENN 1, the recently redeveloped 2.5 million-square-foot office tower<\/a> in the Penn District. The firm had been occupying 8,000 square feet on a portion of the 32nd floor but will now lease the entire 28th floor, with a long-term agreement for 36,500 square feet.<\/p>\n\n\n\n

Vornado has leased 2.1 million square feet of office space year-to-date in Manhattan, Roth said during Tuesday\u2019s earnings call. He added he was confident the REIT would sign between 3.5 million square feet and 3.8 million square feet of Manhattan leases this year.<\/p>\n\n\n\n

Current office occupancy across Vornado\u2019s portfolio was 87.5 percent in the third quarter, down from 89.3 percent in the second quarter, primarily due to the previously announced Meta expiration at 770 Broadway, Michael Franco, Vornado’s president & CFO, said during the earnings call.<\/p>\n\n\n\n

\u201cAs occupancy rises, our earnings will go up. With a pending full building master lease at 770, our office occupancy increases by 330 basis points to 90.8 percent,\u201d Franco told the analysts.<\/p>\n","protected":false},"excerpt":{"rendered":"

The university will take over the office space in the Manhattan building once Meta\u2019s lease expires.<\/p>\n","protected":false},"author":1068,"featured_media":1004736331,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21784,21808,1600,21742,10,21747],"tags":[51511,33030],"class_list":["post-1004736324","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brokerage","category-featured","category-new-york","category-latest","category-northeast","category-office","tag-meta-platforms","tag-vornado-realty-trust"],"acf":[],"yoast_head":"\nNYU to Lease 1.1 MSF at Vornado Property - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"New York University has agreed to master lease the entire 1.1 million square feet of office space at Vornado\u2019s 770 Broadway in Manhattan.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/nyu-to-lease-1-1-msf-at-vornados-770-broadway\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NYU to Lease 1.1 MSF at Vornado Property\" \/>\n<meta property=\"og:description\" content=\"New York University has agreed to master lease the entire 1.1 million square feet of office space at Vornado\u2019s 770 Broadway in Manhattan.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/nyu-to-lease-1-1-msf-at-vornados-770-broadway\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2024-11-07T11:58:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-11-12T16:52:20+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/11\/770-Broadway.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"796\" \/>\n\t<meta property=\"og:image:height\" content=\"615\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gail Kalinoski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/nyu-to-lease-1-1-msf-at-vornados-770-broadway\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/nyu-to-lease-1-1-msf-at-vornados-770-broadway\/\",\"name\":\"NYU to Lease 1.1 MSF at Vornado Property - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/nyu-to-lease-1-1-msf-at-vornados-770-broadway\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/nyu-to-lease-1-1-msf-at-vornados-770-broadway\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/11\/770-Broadway.jpg\",\"datePublished\":\"2024-11-07T11:58:09+00:00\",\"dateModified\":\"2024-11-12T16:52:20+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57\"},\"description\":\"New York University has agreed to master lease the entire 1.1 million square feet of office space at Vornado\u2019s 770 Broadway in Manhattan.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/nyu-to-lease-1-1-msf-at-vornados-770-broadway\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/nyu-to-lease-1-1-msf-at-vornados-770-broadway\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/nyu-to-lease-1-1-msf-at-vornados-770-broadway\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/11\/770-Broadway.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/11\/770-Broadway.jpg\",\"width\":796,\"height\":615,\"caption\":\"770 Broadway in Manhattan\u2019s East Village. 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