Two Large HQ Lease Deals Signed in Westchester

John Jordan | May 2016

CHAPPAQUA—Who says there are no significant corporate headquarters lease deals in Westchester County? In late May, two firms signed lease transactions at properties in Chappaqua at the storied former Reader’s Digest headquarters building here as well as at the Exchange in White Plains.

Brokerage firm Colliers International Group Inc. reported it arranged a long-term, 15,000-square-foot lease for Digitech Computer Inc. at Chappaqua Crossing, the 120-acre, multi-tenant campus located at the site of the former Reader’s Digest headquarters at 480 Bedford Road.

Digitech Computer, a national Emergency Medical Services (EMS) billing firm, relocated its headquarters from Briarcliff Manor to the second floor of the Class-A office building—No. 600.

“The tenant was highly attracted to the live/work/play community, its wide array of amenities, and convenient location minutes away from the Chappaqua Metro North train station,” said Ian Ceppos, a senior managing director at Colliers International, who along with Associate Cameron Paktinat, represented Digitech Computer in the transaction. “As the company continues to grow, Digitech will also benefit from direct access to Westchester County’s strong talent pool.”

Kathleen Fazio and Matthew Lisk, of Cushman & Wakefield, represented the landlord in the transaction.

The ownership group, a joint venture between Summit Development and Greenfield Partners that purchased the 120-acre Chappaqua Crossing campus in December 2006, has plans to develop an additional 120,000 square feet of new retail space, including a full-service grocery (Whole Foods), and 111 units of condominium housing with 20 affordable units at the site.

Current amenities at 480 Bedford Road include: a 400-seat auditorium; a cafeteria with seating for more than 1,000 and private executive dining suites; an 11,000-square-foot, professionally-staffed fitness center with modern equipment, an aerobics floor, exercise classes, locker rooms, and saunas; a full service auto center; a conference center and learning center with computer training and breakout rooms; a guest house with four bedrooms and three dining rooms for off-site events; and 24-hour security.

Other tenants at Chappaqua Crossing include Northern Westchester Hospital, CareMount, and Fiber Media.

CBRE Group’s Westchester/Connecticut reported recently that Sabra Dipping Company, LLC has committed to stay long-term and expand its square footage at The Exchange in White Plains, NY. The company leased a total of 36,345 square feet at the 129,475 square foot building owned by Normandy Real Estate Partners.

CBRE managed both sides of the transaction. Kevin Langtry, vice president, represented the Sabra Dipping Company and SVP Brian Carcaterra, VP Michael McCall and Associate Morgan Collins served as agents for the building owner Normandy Real Estate Partners.

The leading provider of Hummus, salsas, guacamole and other dips first came to The Exchange in 2010 through a sublease with Pernod Ricard. Since the sublease was coming to an end in the near-term, Sabra elected to commit directly with Normandy Real Estate Partners, which resulted in not only a renewal, but additional space leased for potential growth and expansion. According to a CBRE spokesperson, Sabra’s sublease prior to the direct lease transaction with the building ownership was the entire third floor—31,443 square feet—at 777 Westchester Ave., part of the Exchange office complex. The office complex was formerly known under prior ownership as the Landmark at Eastview.

“When Sabra Dipping Company originally came to The Exchange, they noted that the space was well-appointed and designed in a way that gave them a great value for the money already invested,” said Langtry. “Sabra has committed to White Plains for another five years.”

Normandy Real Estate Partners is a real estate operator and investment manager headquartered in Morristown, NJ with offices in Boston, New York City and Washington, D.C. Normandy currently manages a series of discretionary real estate funds, separate accounts and joint ventures totaling approximately $1.5 billion of equity commitments. Normandy’s existing portfolio includes 13.7 million square feet of commercial assets, three hotels and numerous land development sites. Normandy targets value added and core-plus office and mixed-used real estate investments in the gateway markets of Boston, Metro New York City and Washington, D.C.

Photo Caption: Digitech Computer is moving its headquarters to 15,000 square feet of space at the former Reader’s Digest headquarters building, now part of Chappaqua Crossing. FILE PHOTO

 

 

John Jordan
Editor, Real Estate In-Depth