Stellar Management Lands HQ Lease in Manhattan

Community Healthcare Network has signed a 12,083-square-foot, long-term lease at 44 W. 28th St., a 192,000-square-foot office building in Manhattan’s Flatiron District.

Denham Wolf Real Estate Services worked on behalf of the tenant, while CBRE represented the landlord, Stellar Management.

CHN is one of the largest affordable community health care providers in New York City. The tenant will relocate its headquarters at the building’s fifth floor, with moving-in scheduled for this fall. Other tenants include J.T. Magen & Co., YellowHammer Media Group and Stellar Management, according to CommercialEdge information.

The current ownership picked up the asset in 2007, in a $51.5 million deal and in 2019, the property became subject to a $78 million refinancing package, originated by Flagstar Bank, the same source shows.

Completed in 1911, the 16-story building underwent cosmetic renovations in 2008 and features five passenger elevators, 12,000-square-foot floorplates and 9,000 square feet of first floor retail space.

The property is across from Madison Square Park and the 28th Street subway station. John F. Kennedy International Airport is some 15 miles southeast.

Director of Occupier Services Lauren Davis and Transactions Manager Cameron Tuttle with Denham Wolf Real Estate Services worked on behalf of the tenant. CBRE’s Senior Vice President Caroline Merck and Vice President Jacob Rosenthal represented Stellar Management during negotiations.

Manhattan’s low vacancy

The office sector is expected to continue to struggle in 2025 as it’s still adapting to the post-pandemic changes, a recent CommercialEdge report shows. Despite return-to-office policies from some companies, the national vacancy rate clocked in at 19.8 percent as of December last year, marking a 150-basis-point increase over a 12-month period. Office vacancies continued to grow throughout 2024, with the six of the top 25 key markets witnessing an increase by more than 500 basis points.

Nevertheless, Manhattan marked the lowest office vacancy rate in the Northeastern U.S., with 16.6 percent as of December, while also being ranked the fifth lowest on a national level. The borough’s asking rents reached $68.4 per square foot—the highest in the North region and the second-highest in the U.S., after San Francisco’s $70.6 per square foot.

One of the largest deals closed recently was the 147,543-square-foot lease signed by The Federal Deposit Insurance Corp. The government agency will fully occupy three floors, as well as a partial floor for the next 10 years at the 1.6 million-square-foot, 1166 Avenue of the Americas.