Key Takeaways
- • CB Insights, a venture capital research firm, signed an 11-year direct lease for 43,000 square feet on the 12th floor of 498 Seventh Avenue in Manhattan's Garment District at asking rents in the low $70s per square foot, effective June 2019.
- • The company more than doubled its physical footprint from approximately 17,000 square feet (previously occupied on a sublease on the 17th floor since 2016) to 43,000 square feet, reflecting significant operational expansion.
- • CB Insights' co-founder and COO Jonathan Sherry stated the company has more than doubled its team size and tripled revenue since establishing its initial presence at the address in 2016.
- • The 960,000-square-foot building at 498 Seventh Avenue is undergoing substantial capital improvements, including new façade work and lobby renovation, with recent major tenant additions including healthcare union 1199SEIU (580,000 sf) and logistics startup Transfix (60,000 sf).
- • The building's ownership structure includes JPMorgan Asset Management and Loeb Partners Realty, with MetLife acquiring a $150 million stake last year in a transaction valuing the property at approximately $700 million.
Summary
CB Insights, a 10-year-old research firm focused on tracking venture capital investment trends, significantly expanded its Manhattan presence by signing a direct lease for the full 43,000-square-foot 12th floor at 498 Seventh Avenue in the Garment District. The company, which had occupied roughly 17,000 square feet on a sublease on the building's 17th floor since 2016, will relocate to its new, substantially larger space in June 2019. The lease spans 11 years with asking rents in the low $70s per square foot, according to landlord George Comfort & Sons.
The expansion reflects robust growth at CB Insights. According to Jonathan Sherry, the company's co-founder and COO, CB Insights has more than doubled its team size and tripled revenue since first establishing a footprint at the address in 2016. This operational scaling necessitated the move to more than double the company's real estate footprint, positioning the venture capital research firm as a significant tenant anchor in the ongoing revitalization of the Garment District.
The building itself is experiencing substantial reinvestment and tenant diversification. Landlord George Comfort & Sons is executing capital improvements including a new façade on the first two floors and a renovated building lobby. The 960,000-square-foot property has attracted marquee institutional and corporate tenants: healthcare union 1199SEIU Healthcare Workers East and its benefit fund leased 580,000 square feet with a dedicated private entrance, while trucking-logistics startup Transfix secured a 60,000-square-foot direct lease earlier in 2018.
The building's ownership structure underscores the property's investment-grade status. JPMorgan Asset Management and Loeb Partners Realty own the property in partnership. MetLife acquired a $150 million stake in the asset last year, valuing the overall property at approximately $700 million. Drew Conner of the Dashrock Group represented CB Insights in lease negotiations, while George Comfort & Sons' in-house brokers Matt Coudert and Andy Conrad handled the landlord's interests.
The expansion reflects robust growth at CB Insights. According to Jonathan Sherry, the company's co-founder and COO, CB Insights has more than doubled its team size and tripled revenue since first establishing a footprint at the address in 2016. This operational scaling necessitated the move to more than double the company's real estate footprint, positioning the venture capital research firm as a significant tenant anchor in the ongoing revitalization of the Garment District.
The building itself is experiencing substantial reinvestment and tenant diversification. Landlord George Comfort & Sons is executing capital improvements including a new façade on the first two floors and a renovated building lobby. The 960,000-square-foot property has attracted marquee institutional and corporate tenants: healthcare union 1199SEIU Healthcare Workers East and its benefit fund leased 580,000 square feet with a dedicated private entrance, while trucking-logistics startup Transfix secured a 60,000-square-foot direct lease earlier in 2018.
The building's ownership structure underscores the property's investment-grade status. JPMorgan Asset Management and Loeb Partners Realty own the property in partnership. MetLife acquired a $150 million stake in the asset last year, valuing the overall property at approximately $700 million. Drew Conner of the Dashrock Group represented CB Insights in lease negotiations, while George Comfort & Sons' in-house brokers Matt Coudert and Andy Conrad handled the landlord's interests.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.