Fintech Startup Doubles Space in Flatiron District

A fintech startup isn’t looking for the off-ramp from the Manhattan office market. Quite the opposite, actually.

Ramp signed a deal with Williams Equities to expand by 66,000 square feet at 28-40 West 23rd Street, the Commercial Observer reported. The startup is also transitioning from a sublease to a direct lease on a separate floor, bringing its total at the property to 132,000 square feet.

The asking rent on the deal wasn’t disclosed. Asking rent in the broader Midtown South submarket was $84.50 per square foot in the second quarter, according to CBRE.

All of Ramp’s space at the Flatiron District property is covered by a 10-year lease going forward. A Colliers team including Mac Roos and Andrew Roos represented the landlord, while Cushman & Wakefield’s Michael Mathias and RJ Johns represented the tenant.

A year ago, Ramp relocated from Madison Capital’s 71 Fifth Avenue to sublease space from Microsoft at 28-40 West 23rd Street. The startup, which took the entire second floor in the sublease, offers corporate credit cards and cost-cutting services for businesses.

In the spring, Williams Equities received a five-year, $155 million loan from Citi Real Estate Funding for the two interconnected cast-iron buildings, replacing a $140 million CMBS loan.

At the time of the refinancing, the landlord was planning several upgrades to the 12-story, 577,000-square-foot Class B property, such as a roof deck and triplex penthouse office suite; the building dates back to 1911.

Anchor tenant Home Depot recently signed an extension at 40 West 23rd Street. It occupies the ground floor, lower level and mezzanine of the former Stern Brothers department store. Other office tenants include Estee Lauder brand Aramis.

Monthly leasing fell by nearly a third from July to August in Manhattan, but jumped 3.5 percent year-over-year, according to a monthly Colliers report. The borough’s year-to-date activity approached 21 million square feet in August, putting the borough on track to surpass 30 million square feet in volume for the first time in five years.

— Holden Walter-Warner