A significant advancement has been made in the redevelopment of the historic terminal warehouse, with Hospitality Group securing a lease for a 50,000 square foot upscale event space.
The venue, named after notable architect George Mallory and constructed in the 1890s, is the first tenant signed in West Chelsea’s expansive 1.3 million square foot industrial complex, which once served as a freight terminal and hosted the notorious tunnel nightclub from 1986 until 2001.
This new Mallory venue will mark the 18th location for the group, which operates 39 hospitality-focused establishments worldwide. In New York, they already have spots at 101 Park Ave., 75 Rockefeller Plaza, and Brookfield Place. The renovated terminal warehouse is seen as an ideal site for various special events and provides meeting spaces and lounges for the building’s office tenants.
“Large gatherings that are cultural and experiential bring life to cities. Over the past 16 years, we’ve expanded to create essential destinations for unique experiences and to refine our operations in hospitality,” a representative mentioned.
The specific terms of the lease have yet to be revealed.
Situated at the northwest corner of 12th and West 28th Avenue, Mallory can accommodate up to 550 guests. It features a reception lounge with a 25-foot bar, a grand event hall with 19-foot ceilings, a special suite, and gallery space with movable walls.
Rocco Laginestra from CBRE represented the Hospitality Group, while the landlords were represented by Alan Schmerzler and Steven Soutenijk from Cushman & Wakefield.
This lease is pivotal for the Terminal Warehouse, part of a joint venture between Columbia Property Trust, L&L Holdings Company, and Cannon Hill Capital Partners. The ambitious overhaul of the facility, managed by Cookfox construction, has added new stories on top of the existing structure.
While the total cost of the project hasn’t been disclosed, sources speculate it to be around $2 billion, which includes an $880 million acquisition price.
Marketing efforts for the remaining space are in full swing.
The recently signed lease is just a segment of the available 1.25 million square feet, split between West 28th Avenue and 11th and 12th Avenues, with additional areas still unleased.
Currently, the only publicly accessible area is a small bar and restaurant operated by Danny Meyer, perched at the corner of 11th and West 28th Streets, existing prior to the purchase of the building by its current owners.
A spokesperson for the project stated, “Contracts with fitness providers and various food and beverage operators have been finalized, completing our extensive tenant amenities program. We anticipate engaging in discussions with major office space users, looking to adapt to the evolving city landscape and reduced inventory for prime office spaces.”
Terminal Warehouse exemplifies the adaptive reuse trend that has shaped 21st-century office spaces, similar to the large Starlet Lehi building nearby, St. John’s Terminal in Hudson Square, currently home to Alphabet/Google and Domino’s Refinery.
