Commercial Property Executive: Industry City Leases Millions of Square Feet in Just Two Years
Industry City, the 19-building complex located on the Sunset Park, Brooklyn waterfront, announced this week that they have leased 2-million square feet of space in their 6-million square foot complex since Belvedere Capital, Jamestown Properties and Angelo Gordon took ownership in September 2013.
Commercial Property Executive’s Adriana Pop covered the story:
The Industry City complex is a 6 million-square-foot collection of warehouse structures situated on the waterfront in Sunset Park in Brooklyn. Since 2013, when the property’s transformation into an innovation hub was launched, more than 250 companies have signed leases here for a total of 2 million square feet of space.
Newcomers have joined 70 long-time occupants, including flavor and extract company Virginia Dare, which originally leased space at Industry City nearly a century ago.
Since September 2013, Industry City’s owners led by Belvedere Capital, Jamestown and Angelo Gordon, have infused $100 million into the property’s redevelopment. The total investment plan is expected to top $1 billion, when combined with tenant investment, over the next ten years, and generate a total of 20,000 jobs.
Over the last couple of years, new leases have amounted to more than 1,300,000 square feet, while renewals and expansions have accounted for an additional 700,000 square feet.
Companies that have recently signed leases to occupy space at Industry City include:
- Full-service international design agency Raison Pure: the 50-employee firm leased 14,000 square feet for their new company headquarters in May 2015, with plans to relocate to Industry City from their current space in Manhattan later this year. Kathe Chase and Jeff Fein of Industry City’s internal leasing team represented Industry City in the 10-year deal, while Raison Pure was not represented by a broker.
- NYU Lutheran: in August 2015, the premier medical and social support system leased 29,000 square feet for administrative offices and a training facility that will house 140 employees when fully activated. The 15-year deal was negotiated by Josef Yadgarov of Corcoran, on behalf of NYU Lutheran, and Kathe Chase and Jeff Fein, both of Industry City’s internal leasing team, on behalf of Industry City.
- Time Inc.: the media giant leased 55,000 square feet to house the company’s Technology, Content Solutions and Editorial Innovation departments. The company signed the 15-year deal in July 2015 and plans to move more than 300 employees into the complex by year’s end. Zev Holzman, Howard Nottingham and Matthew Barlow of Savills Studley represented Time Inc. in lease negotiations. Bruce Mosler, Mitchell Arkin, Kelli Berke, Joseph Cirone, Haley Fisher and Mikael Nahmias of Cushman & Wakefield represented Industry City.
- Park Irmat Drug Corp.: the premium dermatology pharmacy leased 26,000 square feet for the company’s headquarters and operations. In total, 150 employees will be housed in the space. The 10-year lease, which was signed in May 2015, was negotiated by Ross Perlman and Ryan Gessin of Newmark Grubb Knight Frank, who represented Irmat, and Bruce Mosler, Mitchell Arkin, and Joseph Cirone of Cushman & Wakefield, who represented Industry City.
- Design Within Reach: the modern furniture and home décor leader leased 39,000 square feet for an interactive outlet store and repair facility, which opened in May 2015. The company signed the five-year lease in July 2014. Industry City’s internal leasing team negotiated the deal on behalf of Industry City, while Design Within Reach represented itself.
- BaubleBar: the fast-growing jewelry e-commerce startup leased 53,000 square feet for a production and distribution space that houses 150 employees. The company signed the 10-year lease in September 2014. Mitchell Arkin and Owen Hane of Cushman & Wakefield represented BaubleBar in the negotiations, while Industry City’s internal leasing team worked on behalf of Industry City.
- Brooklyn Nets: the NBA team leased 75,000 square feet for a new state-of-the-art training center, known as the Hospital for Special Surgery Training Center. The $35 million facility is set to open in February 2016. The company signed the 25-year lease in June 2014. Glen Markman, Bruce Mosler, and Joseph Cirone of Cushman & Wakefield negotiated the deal on behalf of the Nets, while Industry City’s internal leasing team worked on behalf of Industry City.
Major renewals and expansions include:
- MakerBot: the consumer market leader in 3D printing expanded from 45,000 square feet in February 2013 to 250,000 square feet by October 2014. The company now houses more than 200 employees and their entire manufacturing, engineering and design operation at the complex. The 10-year lease was negotiated by Glen Markman and Joseph Cirone of Cushman & Wakefield on behalf of MakerBot, and by Industry City’s internal leasing team on behalf of Industry City.
- Virginia Dare: the flavor and extract company that signed its first lease at Industry City in the 1920’s renewed and expanded its manufacturing facility to 150,000 square feet in October 2013. The 10-year lease was negotiated by Industry City partner Bruce Federman for Industry City. The tenant was not represented by a broker.
- BMGM: the fashion company which signed an initial lease with Industry City in 2000 for 5,500 square feet has expanded several times and currently utilizes 37,000 square feet space for manufacturing, warehousing, and distribution of garments. The company recently renewed their lease for an additional five-year term and was not represented by a broker.
- West Elm: the subsidiary of Williams-Sonoma Direct, Inc. has been a tenant at Industry City since April 2012, expanding the original 11,600 square feet premises to a 52,000-square-foot facility that houses a studio for prototyping, photo studio and distribution center. The recent expansion also extended the term for an additional 10 years through August of 2028. The combined expansion and renewal was negotiated by Retail Strategies on behalf of West Elm.
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