Flatiron Health Sublets 30K SF to Yotpo at Stellar’s One Soho Square

One Soho Square with Stellar Management’s Larry Gluck and Yotpo CEO Tomer Tagrin (LoopNet, Twitter, Gluck Family Foundation)

An e-commerce marketing platform is moving its US headquarters from 400 Lafayette Street in NoHo to Stellar Management’s One Soho Square.

Yotpo will sublease 30,700 square feet from Flatiron Health at the 768,000-square-foot office and retail complex at 233 Spring Street in Hudson Square.

The company will move into its new digs Oct. 1. The length of the agreement was not disclosed. A CBRE team consisting of Harley Stevens and Jared Freede brokered the transaction.

Yotpo, which has 29,000 square feet at 400 Lafayette Street, was looking for a space that fits better with the company’s hybrid working model, CEO Tomer Tagrin said. The space that Yotpo is taking at One Soho Square has never been occupied, according to CBRE.

“We needed a location that would be accessible and attractive to our employees, and an office that made people excited to come in,” Tagrin said. Yotpo has six other locations — two in Israel and one in Austin, London, Sydney and Bulgaria.

Flatiron Health, the property’s largest tenant at 223,000 square feet, had been looking to offload about 18 percent of its space, according to a rating report by DRBS Morningstar last year. The health care technology company had previously offered nearly half of its space for sublease as part of a plan to expand into it at a later date.

The e-cigarette startup Juul, which signed a lease for 54,000 square feet at One Soho Square in 2019, had put all of its space up for sublease last year, having yet to take occupancy when the pandemic began.

Other notable tenants at One Soho Square include the eyewear company Warby Parker, fashion company MAC Cosmetics, healthcare insurer Aetna and Trader Joe’s. As of last year, the annual rent per square feet among tenants ranged from $76 to $128.

Stellar’s office and retail project consists of the 15-story One Soho Square East, built in 1904, and the 13-floor One Soho Square West, constructed in 1927. Larry Gluck’s development firm acquired the two buildings, at 161 Sixth Avenue and 233 Spring Street, for $200 million in 2012.

Stellar bought out its former partner Rockpoint Group’s 25 percent interest in the project in 2016. The deal valued the project at $650 million.

The firm then landed a $905 million refinancing last year from Goldman Sachs, Deutsche Bank and Bank of Montreal.

Yotpo’s sublease comes as Manhattan’s office market appears to be gaining momentum. Tenants signed leases for nearly 3.4 million square feet in August, according to Colliers, the most in any month since January 2020. Available space in Midtown fell for the sixth straight month.

Attendance at the city’s office buildings was 46.6 percent in the week ending Sept. 14, according to Kastle Systems, which tracks card-swipe data. It hadn’t gone above 43 percent since the onset of the pandemic.

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