AEW Capital JV Lands Recording Studio as NYC Tenant

60 Charlton St. Image courtesy of AEW Capital Management, APF Properties and Drake Street Partners

Recording studio Arcade Songs has signed a 12-year lease at 60 Charlton St., a 98,400-square-foot boutique office building in New York City’s Hudson Square neighborhood in Lower Manhattan. Arcade Songs will relocate from its current location at 587 5th Ave. and occupy 18,970 square feet on the second and fourth floors of the 12-story building.

A JLL team brokered the lease on behalf of the ownership, a joint venture of AEW Capital Management, APF Properties and Drake Street Partners, while CBRE represented the tenant.

READ ALSO: Leasing Activity Animates Slow Manhattan Office Market

The recording studio joined the existing tenant roster including Paper Shop, Quality Impressions and Scotti Graphics, according to CommercialEdge. Last year, tech investment firm Picus Capital also signed a 10-year lease for the 6,520-square-foot penthouse on the 12th floor at 60 Charlton.

A modernized office space in Lower Manhattan

The property recently underwent a multimillion-dollar redevelopment plan, resulting in the removal of the third floor to create a spacious double-height area on the second floor. Within this revamped space, Arcade will establish its recording studios, while their executive offices will be situated on the floor above.

As part of the LEED Gold certified property’s revamp plan, the team also restored original architectural elements, while the building underwent modernization with updated mechanical infrastructure. Additionally, six new stories were constructed.

Floorplates at 60 Charlton St. range from 6,500 to 9,000 square feet. Property amenities include a lobby with a fireplace and seating area, a bike room and shower area, as well as an outdoor roof deck with kitchen service area.

Positioned on the southwest corner at Charlton and Varick streets, the property is located between Disney’s 1.2 million-square-foot underway campus, at 137 Varick St., and Google’s 1.3 million-square-foot headquarters within St. John’s Terminal.

Situated at the convergence point of SoHo, TriBeCa and the West Village, 60 Charlton is within walking distance of the PATH train connecting to New Jersey, Penn Station and Grand Central Terminal.

JLL Vice Chairman Mitchell Konsker, Executive Managing Director Benjamin Bass, Associate Vice President Harrison Potter, along with Senior Vice Presidents Kristen Morgan and Carlee Palmer, exclusively represented the 60 Charlton ownership group in the lease agreement. Arcade Songs was represented by CBRE Senior Vice president Alex D’Amario and First Vice President Gary Davies.

Manhattan maintains position as highest-priced U.S. office market

According to a recent CommercialEdge report, Manhattan continues to hold its status as the most expensive office market in the U.S. As of April, the average full-service equivalent listing rate reached $74.0 per square foot. The rental rates for the floors leased by Arcade exceeded the market asking sum, being in the range of $90 per square foot.

The vacancy rate in Manhattan clocked in at 16.8 percent, which is only slightly higher than the national average, by 10 basis points, according to the same source. The report also highlights that Manhattan has a substantial amount of ongoing office construction, some 9.5 million square feet, or 2.1 percent of the market’s total office stock.