This amazing building right around the corner from CompStak HQ is killing it in the leasing market - over 80% leased, with a mere 20% to go.
When developer Edward Minskoff set out to build a new office tower in the East Village, with asking rents ranging from just under $90 to $120 per square foot — roughly double the average in the surrounding area — many in the industry questioned his logic. And for good reason.
When the project broke ground in 2011, the economy was still recovering from the recession. Few developers were building new office space, especially without tenants lined up. Nonetheless, Minskoff landed a $165 million loan to build on a full block in Astor Place, without a robust office market there.
The 12-story building — an angular modern glass structure in the midst of an area known for its decorative 19th-century stone edifices — launched leasing in June 2013. Nearly four months later, it hadn’t signed one tenant. The lack of activity generated headlines about the uphill climb Minskoff and his leasing team from commercial firm JLL would face. Both Facebook and Microsoft considered space there and then walked — Facebook to Vornado Realty Trust’s 770 Broadway, and Microsoft to 11 Times Square.
“We faced a lot of negativity,” Minskoff told The Real Deal last month. “A lot of naysayers piped up and made comments about how we weren’t leasing, but they really didn’t know what they were talking about. People love to be negative. It’s human nature.”
But Minskoff’s gamble on the building, which according to published reports cost north of $300 million, appears to be paying off now.[...]