Bagatelle International Takes Full Floor at 463 Seventh Avenue, Filling Arsenal’s Garment District Tower

Bagatelle International Takes Full Floor at 463 Seventh Avenue, Filling Arsenal’s Garment District Tower

A Canadian apparel maker is the anchor of two new office deals that have pushed a Garment District tower to full occupancy. Bagatelle International, the manufacturer behind the high-end brands Bagatelle and Avec Les Filles, signed a lease in mid-June for 23,785 square feet — the entire 10th floor — at Arsenal Company’s 22-story property at 463 Seventh Avenue, between West 35th and West 36th streets.

The deal was the larger of two new leases totaling 33,083 square feet at the building, which landlord broker Adams & Company said is now 100 percent leased. Asking rent for both transactions was $59 per square foot.

“Bringing 463 Seventh Avenue to 100 percent leased is another milestone for our portfolio and a testament to the resilience of the Midtown office market,” said David Levy of Adams & Company, who represented the landlord along with Benjamin Levy.

Bagatelle plans to move its offices and showroom in October from a smaller, multi-floor space at Brause Realty’s 141 West 36th Street. Dennis Someck and Justin Myers of Lee & Associates NYC represented the tenant. Someck, who has worked with Bagatelle for roughly 25 years, noted the company has grown into a meaningfully larger tenant over that span, and described the move as a natural next step.

The second lease, signed in late July, went to KS Engineers — also known as KSE — a Newark, N.J.-based engineering and construction management firm. KSE took 9,298 square feet for general and executive office use. A team from CBRE — Alexander Benisatto, Carolyn Sica and Trevor Larkin — represented the tenant. CBRE Group, the commercial real estate services firm, saw its shares slip 1.6 percent in recent trading to $137.44, with a market capitalization of roughly $42.8 billion. It was not immediately clear whether KSE is expanding or relocating from its existing Financial District offices at a Chetrit Organization property.

The leasing activity at 463 Seventh Avenue adds to a stretch of occupancy gains in Manhattan’s Midtown office corridor, where landlords have pointed to full-building lease-ups as evidence of tenant demand despite broader questions about office utilization.

What to watch

• KSE’s occupancy timeline and whether the firm confirms a relocation or expansion from its Financial District offices.
• Broadbrooke-term details for both leases, including lease length and concessions, if disclosed.
• Further leasing announcements at nearby Garment District towers, which could signal whether Midtown’s occupancy momentum continues.

Source: original release