Holtzbrinck expanding in Flatiron.

Newmark reports that publishing giant Holtzbrinck Publishers, the parent company of St. Martin's Press and Henry Holt among others, has signed a new lease that will increase its presence at the Flatiron Building from 12 to 18 floors.

The 15-year deal at the landmark property at the intersection of Broadway, Fifth Avenue and 23rd Street, totals approximately 157,500 s/f.

Newmark chairman Jeff Gural and senior managing director, Rhonda Panensky, represented the building ownership in the transaction. GVA Williams represented the tenant.

Privately, Gural, Newmark rice chairman and chief executive officer Barry Gosin and president James D. Kuhn, along with friends and family, own approximately 95% of the leasehold and 71% of the fee interest in the building at 175 Fifth Ave.

Holtzbrinck, which has been operating out of the building since 1959, will occupy all but two floors, (the 7th and 8th floors) of the 20-story, 180,000s/f building. The lease, which involves an expansion of 84,000 s/f, will allow the firm to consolidate its New York City operations.

The landmark building already houses its St. Martin's Press, Tor and Picador divisions. Henry Holt, which is currently operating out of space on 18th Street, will be relocating to the building. The lease transaction also gives Holtzbrinck the option to lease the entire building in the future.

Gural said, "We are very happy to have such a prestigious tenant as Holtzbrinck Publishers at our building. The new lease I believe reinforces the building's image and that of the area as a bastion for this type of tenancy."

Peter Garabedian, Holtzbrinck's COO, commented, "St. Martin's Press has been located at the Flatiron Building for over 40 years and it has provided an excellent environment for our publishers and editors and we are excited to be able to expand there."

Kuhn added that the rent under the new lease agreement begins in the low $30s-per-s/f range and increases over time. He noted the deal just goes to show that, "even in a market that is not robust, the best buildings get the best tenants."

The building ownership has agreed to put in new windows, bathrooms and pay for pan of the tenant improvements, Gural noted. In addition, improvements will be made to electrical servers and the air conditioning system. The ownership some time ago replaced one of the city's last water hydraulic elevator systems with conventional electric powered elevators and new cabs. The lobby also contains a historical exhibit celebrating the 100th anniversary of the building last year.

Newmark officials also report six other smaller lease signings at the building. Advertising agency Gardner Nelson & Partners is expanding its presence at the Flatiron Building from 4,300 s/f to the entire seventh floor (9,000 s/f). Hangar Design Group, Inc. is also expanding its lease, signing a deal for 900 s/f on the 8th floor.

Robert Mondavi Corp. and Gramercy Typewriter renewed their respective leases of 1,400 s/f and 300 s/f on the 8th floor. In addition, two new tenants signed leases for space on the 8th floor.

Martin R. Lewis Associates recently moved into 1,400 s/f of space at the Flatiron Building after relocating from offices at 461 Park Avenue South and the Grace Tea Company also moved in on July 1. The company occupies 600 s/f at the property after shifting its operations from 50 West 17th St.

The ground floor of the building totals approximately 8,000 s/f and is occupied by retail tenants Estee Lauder and Sprint.