The DUMBO Heights partnership of Kushner Cos., LIVWRK and RFR Holding announced the signing of an 11-year, 79,500 s/f lease agreement with international education technology firm 2U at 55 Prospect Street.
The deal adds to a rapidly expanding roster of innovation economy leaders at the 1.2 million square foot mixed-use urban campus in Brooklyn.
2U will relocate from its current office in Chelsea and expand its New York office.
In recent years, 2U has experienced rapid growth, has added multiple new clients to its portfolio, including New York University and Vanderbilt University, and has announced 10 new partner programs expected to launch in 2017. From 2010 to 2016, 2U grew its workforce from 98 to more than 1,100 employees, including more than 150 employees currently working in New York City.
The company will occupy the building’s top three floors (8, 9, 10) equipped to accommodate the current and future growth of its New York City office.
The space comprises an efficient floorplate with newly installed windows on four sides that offer views of the Brooklyn and Manhattan bridges, the East River, Midtown and Lower Manhattan.
The lease also includes a private roof deck with skylight views into the 10th floor, and potential for signage atop the building.
2U was represented by Paul Schweitzer and Adam Schindler at Serten Advisors, along with Craig Lemle and Nick Zarnin at Savills Studley. David Fleisher of Savills Studley was able to negotiate a package that will provide over $20 million in incentives to the tenant.
“We were very pleased to advise 2U in what we believe will be a game-changing deal for the neighborhood. After an extremely thorough search that covered all of Midtown South, Lower Manhattan, Long Island City, and various parts of Brooklyn, we found the perfect long-term home for 2U at 55 Prospect Street,” said Zarnin. “The quality and flexibility of the space, as well as its location in the heart of the vibrant Dumbo Heights community, made it a great fit for an extremely collaborative company like 2U.”
The DUMBO Heights partnership was represented by a CBRE team led by Sacha Zarba and Jeff Fischer and in-house by Daniel Bodner of Kushner Cos.
“DUMBO Heights offers the collaborative environment, unique floor plates and views, proximity to talent and sense of community that cutting-edge companies like 2U crave,” said Daniel Bodner, director of leasing at Kushner Cos. “We’re thrilled to welcome 2U to the campus as the latest firm to leave Manhattan for DUMBO Heights.”
“2U will be a perfect addition to DUMBO Heights,” said Asher Abehsera, founder and CEO of LIVWRK. “The company will mesh naturally with the vibe and culture of the campus while occupying one of the premier innovation-economy office spaces not just at DUMBO Heights, but anywhere in the city.”
“The collaborative environment and urban campus of the DUMBO Heights community are a perfect fit for 2U’s unique personality and the needs of our New York employees,” said James Kenigsberg, 2U’s chief technology officer.
“As we continue to grow and scale as a company, recruiting top tech and creative talent remains a top priority for 2U. Our new office location will help us recruit and retain the best of the best, while providing them with an innovative, state-of-the-art facility that will help employees thrive in their roles.”
2U is the latest global creative industry firm to leave a Manhattan neighborhood for DUMBO Heights. In October, advertising and marketing agency B-Reel signed a 13,500 s/f lease at 77 Sands Street, and will relocate from SoHo. And in September, digital business firm Wipro Digital announced its move to DUMBO Heights from Union Square. The company, which is owned by parent company Wipro Limited, will share the 18,800 s/f space at 77 Sands Street with partner organization Designit.
Already home to Etsy, WeWork, Prolific Interactive, Frog Design and other creative companies, DUMBO Heights’ retail tenant roster comprises more than 80,000 s/f of lifestyle, dining and nightlife options, including Row House, Bluestone Lane Coffee, Taco Dumbo, Dig Inn, Untamed Sandwiches, a Randolph Beer brew pub, Husk, Glaze Teriyaki, Yoga Vida and Shadowbox.
An additional feature of the DUMBO Heights campus will be the Brooklyn Tech Gateway, a streetscape plan along a formerly barren stretch along Sands Street from Adams to Jay streets.
The Gateway will connect with several key neighborhood access points, including the pedestrian paths and bikeways for the Brooklyn and Manhattan bridges, and the Brooklyn Navy Yard area. The development team will maintain the Gateway in partnership with the DUMBO BID.
Outfitted with plantings, charging stations, modular furniture and public art, the Gateway will also connect directly to DUMBO Heights dining and nightlife tenants housed in arcade spaces via rollup glass doors.
The development team envisions the space as a placemaking opportunity for DUMBO Heights tenants along with other local residents and organizations.
The Gateway was designed specifically to serve several user groups, including local residents, the nearly 7,000 workers housed in the DUMBO Heights campus, and visitors to the area.
