As seen in
January 24, 2001
Commercial Real Estate
Rarity in Manhattan: Room for a Growing
Company to Consolidate
by EDWIN McDOWELL
The last several years have been difficult
for those seeking to rent large blocks of office space in
a single building in Manhattan. Yet Getty Images, which calls
itself the world's biggest provider of photographs and other
visual materials, is moving its approximately 500 New York
employees from seven scattered locations into almost 225,000
square feet in a 17-story building in TriBeCa.
In a further twist, the space
had not been listed with brokers or otherwise advertised for
rent. The space is on the fourth and fifth floors in a triangular,
1.1 million-square-foot building, at 75 Varick Street, renamed
1 Hudson Square. Getty Images has also acquired 36,000 feet
more across the street, in adjoining buildings at 12-16 Vestry
Street and 200 Hudson Street.
Getty Images also has an option on an additional 72,000 square
feet of space on the third floor at 1 Hudson Square, effective
at the end of January 2002, but meantime, since its consolidation
did not require as much space as it thought, it has put its
73,000 square feet on the sixth floor on the market.
Printers make way for higher-paying
tenants.
Founded in London in 1995 but based in Seattle since 1999,
Getty Images at first wanted 35,000 square feet for a New
York office. But it acquired five New York companies scattered
across seven locations in Manhattan in the last six years,
and its space requirements soared. The New York companies
include the Image Bank and the Visual Communications Group,
previously Getty's biggest competitors.
Getty's search and negotiations took more than a year before
the final lease was signed last April.
"It took time, effort and determination
to put it all together," said James Meiskin, the president
of Plymouth Partners, which represented the New York real
estate operations of Getty Images, "because it involved consolidating
the seven Getty locations, and the landlord hat to buy out
and relocate 13 companies that occupied the space that Getty
moved into."
Because none of that space was on
the market, Mr. Meiskin said he and Tim Kucha, a director
of Plymouth Partners, had to convince the building's landlord
that it was worth many millions of dollars for it to negotiate
the early end of the 13 leases.

Getty's lease, for 15 years with options,
is valued by real estate executives at $175 million to $200
million.
Getty's new landlord is Trinity
Real Estate, a unit of the Parish of Trinity Church, which
owns extensive property in the Hudson Square area.
Like many other landlords, in the last several years Trinity
has not been renewing the leases of its lowest-paying tenants
so that it can replace them with higher-paying ones. Simultaneously,
it is upgrading its buildings, including a revamping of at
least $1 million at 1 Hudson Square. Most of Trinity's lowest-paying
tenants in recent years have been printers or related businesses.
All but a few of the 13 companies that have been moved from
1 Hudson Square, or soon will be, were affiliated with the
printing industry. None had their leases ended involuntarily,
said Stuart A. Christie, a former real estate lawyer, who
has been leasing offices for Trinity for three years.
In addition, Mr. Christie said, "five of the 13 who accepted
buyouts moved into other Trinity-owned buildings in the surrounding
area."
Mr. Meiskin, Mr. Kucha and Marshall
J. Cohen, a lawyer with the Manhattan firm of Stadtmauer Bailkin
who represented Getty Images, each said that Trinity was as
concerned about honoring its existing contracts as about the
additional rent it would get from Getty.
"They were terrific," Mr. Cohen said of Trinity. "They've
worked hard to turn the building into a beautiful piece of
real estate, and they were honorable in our dealings."
Mr. Meiskin contrasted the Trinity negotiation with an earlier
one on behalf of Getty Images involving 68,000 square feet
in a building on Eighth Avenue. "We had a handshake with the
owners and told them to prepare leases," he said. "But after
we agreed on terms, we learned the owners decided to lease
it to others for more money."
While the search for space and subsequent
negotiations were long and complicated, Getty Images had no
complaints. Jonathan Klein, the companys co-founder
and chief executive, said it was well worth the wait, adding
cheerfully: "Moving is always complicated. Show me one
that isnt."
The companys other co-founder, as well as president,
is Mark Getty, a grandson of J. Paul Getty, the oil magnate,
who died in 1976. Getty Images has 2,600 employees.
Consolidating its New York operations meant that certain companies
that Getty Images acquired had to go through more than one
move before settling in at Hudson Square.
"But we took the view that it was important to consolidate,"
Mr. Klein said, "important financially, culturally and
for an easier flow of expertise." Having acquired companies
in many lands with many cultures, he added, "When we
put people together geographically, we find they have more
in common than they think."

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