Capital One is expanding to 124,000 square feet at 11 W. 19 St. in the Flatiron District before they even occupy the space.
Last fall, the company subleased 72,000 feet from advertising giant Publicis Groupe on the interconnected second through fourth floors.
Now, the financial giant has signed a new direct 16-year deal for another 52,000 feet of raw space on the fifth and sixth floors. The asking rent was $68 per foot.
Dale Schlather of Cushman & Wakefield represented the bank in its deals and could not be reached for comment.
Capital One is currently building out all the space to serve its own technology needs.
Bob Savitt of Savitt Partners, who leads the ownership group, negotiated the transaction along with Brian Neugeboren. “It’s a great deal for the building and for Capital One,” Savitt said. Tory Burch occupies the remaining five office floors.
A 19,000-square-foot Pottery Barn will open on the ground floor that can be accessed from both West 19th and 20th streets.
The lender also has three floors at nearby 114 Fifth Ave. where competitor MasterCard may leave 60,000 square feet to take all of 150 Fifth Ave. in 2018 for its own technology hub, the RealDeal reported.
Cushman & Wakefield’s first-quarter report shows this part of Midtown South with a vacancy of 6.6 percent and average Class A asking rents of $81.83.
