Old is New: Verizon HQ Makes Midtown Move to 1095 Sixth Avenue

After nearly 90 years at 140 West Street in one of Manhattan’s most important early skyscrapers, Verizon is relocating its headquarters back to Midtown and 1095 Sixth Avenue, across the street from Bryant Park.

140 West Street, with 7 World Trade Center standing behind it to the east.

For over eighty years, New York Telephone and its successor company Verizon have been located at the iconic, Art Deco-style, landmarked Barclay-Vesey Building at 140 West Street. But first 9/11 and then Superstorm Sandy appears to have been enough for the telecom giant: in a $274 million transaction that connects a number of recent, interesting gbNYC+ storylines, the company has announced plans to move its headquarters back to Midtown and its former home at 1095 Sixth Avenue, across the street from Bryant Park and the somewhat star-crossed (at least from an energy-use perspective) Bank of America Tower.

In the deal, Verizon sold the upper 21 floors of the 31-story, 1.8 million-square-foot tower, which suffered over a billion dollars in losses on 9/11. Then Sandy-related flooding caused millions in damage to various equipment on the lower floors. Yet Verizon will keep the lower ten floors, where nearly 600 Verizon Communications employees will continue to work. 1100 other customer service employees will relocate to another Verizon property at 395 Flatbush Avenue in Brooklyn. The purchaser – Magnam Real Estate – will convert the upper ten floors to residential condo units.

“We are pleased to continue to move forward with the conversion of our building on West Street from a traditional telecommunications hub to a multipurpose building that will contribute meaningfully to the city’s long-term vision for a vibrant World Trade Center neighborhood,” Verizon senior vice president of global real estate John Vazquez told Crain’s. “We believe that with our co-owners, Magnum Real Estate Group, we will stand out in what already has become a desirable tourist and residential center for New York City.”

The transaction is interesting for a few reasons. First, it echoes a disposition pattern: Verizon similarly sold off almost all of 375 Pearl Street in 2011 (for $120 million), retaining only three floors to house various telecommunications equipment. That building is now home to the Intergate.Manhattan data center facility, which continues to expand as New York City’s tech sector’s appetite for data storage and computing power increases. Second, in moving to 1095 Sixth Avenue (pictured, left), Verizon is returning to the address of its former headquarters, which it left in 2005 after selling most of that building off to the Blackstone Group (though, again, it retained a seven-floor condominium interest in connection with that transaction).

In 2008, 1095 Sixth Avenue – which was once known the Verizon Building – underwent a two-year, $410 million, Moed de Armas & Shannon- and Gensler-led renovation that replaced the building’s entire shell, effectively creating an entirely new structure. Its marble exterior was replaced with an energy-efficient glass curtain wall but – as we noted at the time – the project did not pursue any LEED rating or other third-party certification in connection with its efforts.

About Stephen Del Percio

Stephen Del Percio has written for gbNYC+ since 2006 and currently serves as in-house counsel for one of the world's largest engineering, construction, and technical services companies. He earned a B.Eng. from Columbia, his J.D. at William & Mary, and lives in New York City with his wife and daughter. You can follow Stephen on Twitter, email him at stephen@gbNYC.com, or join gbNYC on Facebook to continue the conversation.

about gbNYC

gbNYC is a multi-disciplinary consulting and real estate services firm. In addition to representing office tenants and commercial buyers in leasing and acquisitions, we also provide innovative consulting solutions from a unique, green building perspective. We advise on green building financial incentives, comment on proposed green building marketing strategies, author white papers, treatises, and market analyses, organize seminars on the LEED process and professional accreditation, and provide advice and analysis on green building risk management and the overall state of green real estate, leasing, and construction, in New York City and beyond.

Our blog, the gbNYC+ journal of real estate, law, + sustainability, delivers consistent, original content - from a New York City perspective - on how technology, data, and sustainability are changing how we interact with our built environment. Subscribe below and receive new articles as they're published or connect with our social media presence to join our ongoing conversation about real estate and sustainability, in the Big Apple and beyond. Contact us at (201) 835-8530 or info@gbNYC.com for more information about our services and to discuss how we can assist you.

, , , ,

No comments yet.
gbNYC Tenant Resources Feature

tenant resources

The commercial office leasing process is complicated. And so is figuring out where to start your search for office space in New York City. gbNYC's tenant resources - from our blog and leasing FAQ to our unwavering dedication to our clients and commercial real estate - can help you get the best possible deal for your next office, in the best location, and at the best price.
gbNYC Submarket Feature

submarkets

New York City is a big place, and figuring out the most suitable location for your office can seem like an insurmountable challenge. Our submarket guide demystifies Gotham's dizzying range of neighborhoods with profiles, articles, new developments, and recent leasing statistics like average asking rents and vacancy rates.
gbNYC Database Feature

office database

We've built a database of the best commercial properties in New York City, focused on LEED-certified, Energy Star-labeled, and historic office buildings. Search for your ideal office building by location, certification, size, or owner. Then contact us to discuss current availabilities and your specific office needs.