Key Takeaways
- • CB Insights, a venture-capital research firm, signed an 11-year direct lease for the full 43,000-square-foot 12th floor at 498 Seventh Avenue in Manhattan's Garment District, more than doubling its previous footprint of approximately 17,000 square feet.
- • The company will relocate in June 2019 from its current sublease on the 17th floor, where it has operated for two years since 2016; asking rent was in the low $70s per square foot.
- • CB Insights has grown substantially since establishing its Manhattan presence, more than doubling its team size and tripling revenue over the past two years, according to co-founder and COO Jonathan Sherry.
- • The landlord, George Comfort & Sons, is undertaking a significant capital upgrade of the 960,000-square-foot building, including a new façade for the first two floors and a rebuilt lobby, while managing major tenant additions including a 580,000-square-foot lease with Healthcare Workers East and a 60,000-square-foot deal with logistics startup Transfix.
- • The building's ownership structure includes JPMorgan Asset Management and Loeb Partners Realty, which sold a $150 million stake to MetLife in a transaction that valued the property at approximately $700 million.
Summary
CB Insights, the 10-year-old venture-capital research and tracking firm, has expanded its Manhattan footprint significantly by securing a direct lease for the entire 43,000-square-foot 12th floor at 498 Seventh Avenue in the Garment District. The company's relocation, scheduled for June 2019, represents more than a doubling of its office space compared to its current 17,000-square-foot sublease on the building's 17th floor, which CB Insights has occupied for the past two years since initially establishing its New York presence in 2016.
The 11-year lease agreement was negotiated at asking rents in the low $70s per square foot. Drew Conner of the Dashrock Group represented CB Insights in the transaction, while the landlord's in-house team of Matt Coudert and Andy Conrad handled negotiations on behalf of George Comfort & Sons. According to Jonathan Sherry, the firm's co-founder and COO, the expansion reflects substantial organizational growth: CB Insights has more than doubled its team size and tripled revenue during its tenure at the 498 Seventh Avenue address.
George Comfort & Sons is actively upgrading the 960,000-square-foot property at the corner of West 37th Street, undertaking improvements including a new building façade on the first two floors and a renovated lobby. The building has attracted other significant tenants recently, including Healthcare Workers East and its benefit fund, which leased 580,000 square feet with a dedicated private entrance, and Transfix, a trucking-logistics startup, which signed a 60,000-square-foot direct lease earlier in 2018.
The building's ownership structure changed materially in 2017, when MetLife acquired a $150 million stake from existing partners JPMorgan Asset Management and Loeb Partners Realty, in a transaction that valued the overall property at approximately $700 million. This capital structure adjustment, combined with the property's ongoing physical improvements and expanding tenant base, positions 498 Seventh Avenue as a major institutional-grade asset in the Garment District.
The 11-year lease agreement was negotiated at asking rents in the low $70s per square foot. Drew Conner of the Dashrock Group represented CB Insights in the transaction, while the landlord's in-house team of Matt Coudert and Andy Conrad handled negotiations on behalf of George Comfort & Sons. According to Jonathan Sherry, the firm's co-founder and COO, the expansion reflects substantial organizational growth: CB Insights has more than doubled its team size and tripled revenue during its tenure at the 498 Seventh Avenue address.
George Comfort & Sons is actively upgrading the 960,000-square-foot property at the corner of West 37th Street, undertaking improvements including a new building façade on the first two floors and a renovated lobby. The building has attracted other significant tenants recently, including Healthcare Workers East and its benefit fund, which leased 580,000 square feet with a dedicated private entrance, and Transfix, a trucking-logistics startup, which signed a 60,000-square-foot direct lease earlier in 2018.
The building's ownership structure changed materially in 2017, when MetLife acquired a $150 million stake from existing partners JPMorgan Asset Management and Loeb Partners Realty, in a transaction that valued the overall property at approximately $700 million. This capital structure adjustment, combined with the property's ongoing physical improvements and expanding tenant base, positions 498 Seventh Avenue as a major institutional-grade asset in the Garment District.
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.