280,000 s/f Eko deal a good fit on W23rd

Real Estate Weekly, June 23, 2004 by Daniel Geiger

High traffic and proximity to multiple lines of public transportation aren't the only things that have made 28-40 West 23rd Street a perfect fit for urban apparel giants Eko Unlimited, who signed the year's biggest lease on the property last week.

With excellent floor plates and high ceilings, the two conjoined GVA Williams-owned buildings are a rare commodity.

"The building is a unique product," said Michael Cohen of GVA Williams. "It just has ambiance. We never had a tenant who didn't think it was a first rate space."

Home Depot's warehouse concept for its retail stores limited the company's search for appropriate locations in Manhattan, where large, open interiors are hard to find. While Ecko's size requirements for its new headquarters weren't as obvious, it too benefited from the spacious dimensions of 28-40 and wound up taking 280,000 s/f--more than twice what Home Depot leased in the bottom two floors of the building.

Originally planning to take under 200,000 s/f, Ecko, whose burgeoning clothing line includes recent additions G-Unit and Fetish fronted by rap stars 50 Cent and Eve, decided to lease additional space in an effort to consolidate all of its operations under one roof. Only the company's magazine Complex will remain exterior to the headquarters, stationed at its original location on West 36th street.

"280,000 square feet of beautiful space with tall ceilings, natural light, a one of a kind atrium, that's centrally located in Manhattan isn't something you come by very often," said Matt Fontana, Senior VP Global Brands for Marc Ecko Enterprises. "This is a huge move for us and we're really looking forward to the next ten years of being here."

Although 28-40's attributes might have made Ecko's decision to lease an easy one, the search wasn't characterized by spontaneity. Having considered as many as 40 different properties over the past two years, company insiders say Ecko's search seemed like it would culminate in the construction of a new complex in New Jersey, where the urban apparel firm was founded by Marc Ecko in 1993.

Deciding instead to reside in Manhattan, Ecko's preference to orbit the garment district rather than be at its nucleus--as its former headquarters at 1350 Broadway was--agrees with the company's offbeat style and allows it to better assert its identity in an area nearly devoid of other clothing manufacturers.

"I think their selection also has something to do with image," Cohen said. "They're going to be able to put their brand on this building."

According to Fontana, Ecko plans to begin relocating operations to 23rd street by July and hopes to have its other seven brands up and running within the building by the end of the year. Just as the white-boarded facade of the Home Depot space indicates heavy remodeling inside, Ecko's quick time frame suggests modest renovations. Their plans to preserve the space's basic layout played directly into GVA Williams' vision for the property.

"We certainly didn't want someone who was going to come in and got the place," Cohen said.

In line with Marc Ecko's tastes, the headquarters' decor will boast a collection of original artwork by urban artists from around the world as well as a basketball court. State-of-the-art audio and video stations will aid the company's recent foray into the video game industry.

The Ecko deal has had a ripple effect. The Moinian Group, which owns the building directly next door, 50 West 23rd street, says their space enjoys near 100% occupancy. Even one of the firm's buildings located relatively distantly at 26th and Madison Avenue has benefited from the windfall.

"The area is just scorching hot," said Daniel Gohari, Director of leasing at The Moinian Group. "You have great restaurants, lots of retail, and then these big deals. It's bettering the neighborhood immeasurably."