Another large deal was done in the Chelsea submarket!
From left: 135 West 18th Street, Deborah Van Der Heyden and One Penn PlazaAutomatic Data Processing, the world’s biggest paycheck processor, has taken 24,639 square feet in a Chelsea office building at 135 West 18th Street, The Real Deal has learned from CompStak. ADP currently has a 34,192-square-foot space at Vornado Realty Trust’s One Penn Plaza.
ADP will pay rents starting in the mid-$60s per square foot at the five-story, 62,969 –square-foot building located between Sixth and Seventh avenues for a 10-year term,CompStak data show. The building is owned by P.J. Mechanical Corporation, one of the city’s largest providers of HVAC systems.
ADP was represented by Jones Lang LaSalle’s Deborah Van Der Heyden and Sophie Haas, while the landlord was represented by Cushman & Wakefield’s Donald Direnzo, Jr., John Fitzsimmons, Charlie Stephens and Myles Fennon.
It was not immediately clear whether the deal was an expansion or a relocation for the company.
A broker on the transaction confirmed the deal, but declined to comment further and requested anonymity. The other brokers could not be reached by press time. ADP could not be reached for comment by press time, nor could the landlord.
ADP is currently paying rents in the low-$40s per square foot for the 23rd-floor space at One Penn Plaza, where they have been a tenant since 1993. Vornado’s director of leasing, Craig Panzirer, declined to comment when asked if ADP would be leaving the building. If it is indeed a relocation, it would buck the trend of firms moving out of Midtown South for cheaper locations such as NoMad.