Newmark Knight Frank signs 265,083 s/f office lease with Gap Inc.

Newmark Knight Frank has negotiated a lease with Gap Inc. for 265,083 s/fat 40 Worth St. The building, which is owned by 40 Worth St. LLC, a partnership led by Jeff Gural and Newmark Holdings, was being redeveloped in contemplation of residential use, but company chairman Gural said that those plans were put on hold and later dismissed in view of this opportunity. The move to 40 Worth St. is part of a two-stage relocation by Gap from its offices at 620 Sixth Ave. and 675 Sixth Ave., in the Flatiron District. Eric Deutsch and Ken Meyerson of CBRE represented Gap Inc., while Gural, Roy Lapidus, Dan Segal, Eric Gural and Brian Steinwurtzel represented the building. Gap Inc. will occupy the 11th through the 16th floors of 40 Worth St., with each floor measuring 45,000 s/f. Newmark Knight Frank will oversee a complete renovation of the building including new windows, elevators, mechanical system and lobby. The company will take initial occupancy late next year. "This was a classic win-win transaction," Gural said. "We believe that this is an indicator of a turnaround in office leasing for the city in general and for the surrounding area in particular." Gural said, "This certainly represents a change of our plans for this building, but it's a welcome change, and we look forward to working with Gap to create a space that suits the company's image." Newmark Knight Frank is one of the largest independent real estate service firms in the world. Headquartered in New York, Newmark Knight Frank and London-based partner Knight Frank operate from over 200 offices in established and emerging property markets on six continents. Last year, transactions were valued at more than $32 billion with annual revenues of over $811 million. With a combined staff of more than 6,300, this major force in real estate is meeting the local and global needs of owners, tenants, investors and developers worldwide. For further information, visit www.newmarkkf.com.