Case Studies

 

Transaction Details

Client
MongoDB

Property
229 West 43rd Street
New York, NY

Transaction Size
30,000 square feet

Transaction Type
Lease Expansion

Industry

New York Times Building Embraces MongoDB, Growing Tech Firm Secures Aggressive Expansion Rights

 

Client Situation

MongoDB, formerly known as 10gen, is an open-source, database oriented technology company that reshaped the market due to the popularity of its agile and scalable approach among developers and IT professionals. In 2011, Savills Studley was engaged by MongoDB to extricate them from a 2,500-square-foot office and secure a short-term 13,000 square foot sublease at 578 Broadway. At the time, MongoDB was experiencing explosive, albeit uncertain growth. During the following months the technology company continued growing at a rapid pace and started to develop a more clear picture of their future real estate needs and once again retained Savills Studley as its advisor.

Consideration Analysis

Savills Studley began an exhaustive search of potential alternatives throughout Manhattan, including market opportunities and multiple off-market options. We presented over 60 alternatives capable of meeting MongoDB’s requirements and spent the next 10 months touring the potential options. While MongoDB had originally been focused on locating their office within the Soho/Midtown South markets, Savills Studley had continuously advised MongoDB to consider opportunities in other areas of the city that would better accommodate their growing needs.

Result

After narrowing the search to a few strategic options, Savills Studley identified an off-market opportunity at the former New York Times building. The top 12 floors of the building had recently been purchased by Blackstone and were vacant and Blackstone was extremely motivated to land a new media/technology tenant with brand recognition. As the first negotiated deal, Savills Studley was able to secure aggressive expansion rights in addition to a lower base rent and double the free rent period secured by another tenant that signed a lease in the building just two weeks later. MongoDB has subsequently expanded its initial 30,000-square-foot footprint by an additional 30,000 square feet in contiguous space and retained their expansion rights to ensure their ability to continue growth within the building. Since the original transaction in 2013, the building has repeatedly proven its viability to TAMI tenants by attracting Snapchat (100,000 sf), Yahoo (176,000 sf) and AlphaSights (22,000 sf). And in perhaps the truest testament to the Savill Studley team's foresight, the building now boasts an impressive 0% availability rate.

 

Meet the Team

Greg B. Taubin
Vice Chairman

Greg joined Savills Studley immediately following his graduation from Tulane University in 1994. His areas of expertise in strategic commercial real estate planning include early lease restructurings and renewals, relocations, and the acquisition and disposition of facilities. Greg has a thorough understanding of the New York real estate market which enables him to structure complex occupancy solutions that align with his clients’ business goals.

+1 212 326 8603

 

Gabe Marans
Corporate Managing Director

Gabe has negotiated lease transactions totaling in excess of 1.6 million square feet since joining Savills Studley in 2009. He was responsible for initiating and leading the brokerage team with respect to MongoDB’s 63,722-square-foot headquarters relocation, and subsequent expansions, in the former New York Times building. In addition, Gabe has represented noteworthy companies across a number of industries throughout Manhattan including the following representative tenant transactions: Rubenstein Associate’s 68,432 SF relocation to Worldwide Plaza; Direct Brand’s 113,000 SF disposition at One Penn Plaza; Ralph Lauren’s 66,246 SF expansion at Starrett Lehigh Building; WisdomTree’s 37,923 SF relocation to 245 Park Avenue and Major League Baseball Players Association’s 21,762 SF early lease restructure at Tower 49.

+1 212 326 8653

 

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