Silverstein Signs New Tenant in Lower Manhattan

120 Broadway. Image by Paul Rivera courtesy of Silverstein Properties

Silverstein Properties has landed a new tenant at 120 Broadway, a century-old skyscraper in Manhattan’s Financial District. Bark, a dog food and toys brand, has leased 52,000 square feet of the office building’s total 1.9 million square feet.

The company agreed to a 15-year lease for the entire 12th floor of the 40-story tower to serve as its new headquarters.

According to a report filed with the Securities and Exchange Commission, the lease will come into effect in April 2022. The tenant will pay a monthly base rent of $239,000 for the first six years, which includes a one year free fixed-rate.

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The headquarters relocation is slated for the fall of next year. Bark has been occupying the sixth floor of a 33,000-square-foot office building at 221 Canal Street since 2013.

Bark will be joining a tenant roster that includes Macmillan Holdings, Golden Goose, Beyer Blinder Belle, Handel Architects and the Department of City Planning.

The Newmark team that handled the lease on behalf of the landlord included Vice Chairman Scott Klau, Executive Vice Chairman Brian Waterman and Executive Managing Director Erik Harris. Joe Artusa and Camille McGratty of Silverstein Properties were also involved in the deal. Savills’ Vice Chairman Greg Taubin represented Bark in the transaction.

The Equitable Building

Dubbed the Equitable Building, after the insurance company that commissioned its construction in 1913, 120 Broadway was officially designated as a national historic landmark in 1978. Silverstein acquired the property in 1981 for $60 million.

The property underwent multiple renovations, receiving LEED Certification in 2012. In 2019, the tower underwent $50 million worth of cosmetic renovations to restore its original look, YIMBY New York reported at the time. The following year, Wells Fargo Bank provided a $510 million refinancing loan for the asset. The note retired a previous CMBS $310 million mortgage.

The Equitable Building offers floorplates ranging 8,700 to 56,000 square feet, 40 elevators and a 20,000-square-foot of rooftop terrace. Located in the Financial District between Pine Street and Cedar Street, the property is surrounded by dining and retail options and is within walking distance of the Wall Street and the Fulton Street Metro Stations.

Manhattan’s office market

In September, Manhattan boasted the lowest vacancy rate across all major metros—10.8 percent, despite a 200 basis points drop in occupancy over a 12-month period, a CommercialEdge report shows. Year-over-year through September, the city registered a 2.6 percent contraction in rent rates. Even so, with an average listing price of $83.52, the Manhattan office market remains the most expensive nationwide by a long shot.

The priciest September listing in the borough was for Olayan Group’s 550 Madison Avenue, with an asking price of $210 per square foot. Just recently, Chubb, a property and casualty insurance company, signed a 240,000-square-foot lease at the Manhattan location.