Mastercard Expands New York City Operations Signs Major Lease Deal in Flatiron District
John Jordan | December 1, 2017
NEW YORK—Mastercard, which is headquartered in Purchase, is significantly expanding its operations in New York City, signing a lease to occupy approximately 212,500 square feet of space at a Fifth Avenue office building. The deal nearly triples the company’s presence in New York City.
The new lease deal will have the credit card giant occupy the entirety of the 11-story 150 Fifth Ave. office building in the Flatiron District of Manhattan owned by L&L Holding Inc. Mastercard currently houses members of its digital and technology innovation group in 80,000 square feet of office space at L&L Holding’s 114 Fifth Ave. With the new agreement, Mastercard will be moving all of its current and future New York City employees from that property to the new space at 150 Fifth Ave.
New York State is providing Mastercard $13.3 million in performance-based tax credits through the Excelsior Jobs Program in connection with its Manhattan expansion that will involve the creation of 473 new technology-related jobs by 2024. Mastercard will also retain more than 250 existing R&D and tech jobs in New York City.
A Mastercard spokesperson said the expansion has no impact on its corporate headquarters operations at 2000 Purchase St. in Purchase. The company purchased and relocated from New York City to the former IBM building in 1995. In late 2013, the company received incentives from New York State and Westchester County for its multi-million dollar renovation of its corporate headquarters building and leased space at 100 Manhattanville Road in Purchase.
The $38-million project involved the renovation of about one-third of its 475,000-square-foot I.M. Pei-designed headquarters building at 2000 Purchase St. In addition, Mastercard expanded its leased space at 100 Manhattanville Road by an additional 14,000 square feet, bringing its occupancy there to 121,000 square feet. The initiative also involved the renovation of approximately 56,000 square feet of space at the 100 Manhattanville Road building.
In connection with Mastercard’s expansion of its technology hub in Manahattan that includes digital product, operations technology, Masterpass and research and development teams, L&L is currently undertaking a multi-million dollar renovation of the building. MasterCard will be adding two floors of new, modern office space and will refurbish the outdoor areas on the building’s terraces and rooftop. MasterCard will be able to hang a branded flag outside the building, along with profuse branding potential in the building’s lobby, L&L officials stated.
“With our diverse workforce and unparalleled commitment to economic development, New York continues to successfully grow 21st century jobs in 21st century industries,” Gov. Andrew Cuomo said. “Mastercard’s decision to expand and innovate its operations in New York is proof-positive that the Empire State has the tools, resources, and pro-business climate for business to thrive.”
Ed McLaughlin, president, operations and technology, Mastercard, said, “New York is an exceptional gateway for talent, innovation and collaboration. We appreciate the ongoing support from Governor Cuomo and the state as we deliver on a commitment to lead in digital. The activities in New York are a natural complement and expansion of our global effort to deliver the digital future today.”
A Cushman & Wakefield team of vice chairman Mitchell Barnett and managing director Andrew Ross represented Mastercard in the transaction. L&L Holding Co. was represented in house by David C. Berkey and Andrew Wiener.
“This boutique office building is a perfect fit for Mastercard as the company continues to evolve from a payments company to a technology company,” C&W’s Barnett said. “The consolidation and growth of the company’s New York offices will allow them to streamline operations for a new generation of leaders and give Mastercard a competitive edge in the battle to attract and retain the best talent.”
He added, “150 Fifth Avenue is in highly desirable location in Flatiron bordering Park Avenue South and Chelsea—an area with one of the lowest vacancy rates in Manhattan.”
Editor, Real Estate In-Depth