The IDEAL School of Manhattan, an independent K-12 school, has become the latest educational institution to lease space in a Class A Manhattan office building, inking a 63,000-square-foot deal at CIM Group’s 5 Hanover Square in the Financial District.
The IDEAL School, which currently enrolls about 200 students, will occupy floors two through five at the 25-story, 338,049-square-foot building along with a portion of the ground floor for a private entrance.
Currently located on the Upper West Side, the school expects to take occupancy in the summer of 2023. The school opened in Manhattan in 2006 for students in grades K-2 and has since expanded into a K-12 school with a postsecondary program.
The IDEAL School is the only independent inclusion school in New York and is known for its dedication to building a community founded on the principles of diversity, acceptance and excellence. It is fully accredited and registered with the New York State Board of Regents.
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Shaul Kuba, co-founder & principal of CIM Group, said in a prepared statement bringing The IDEAL School to the building is an example of the creative leasing approach the firm undertakes at all its properties. Kuba said office buildings can adapt to a blend of traditional business occupants and other uses that may include educational facilities, daycare and preschools, and places for socialization and collaboration such as membership clubs and coworking.
Other landlords of Class A office space in Manhattan have been leasing space to educational and medical tenants. In January, The Rudin Family, owner of 3 Times Square, signed a 32-year lease with Touro College and University System for a 245,000-square campus at the approximately 950,000-square-foot building in Midtown Manhattan. Touro, which will have a dedicated entrance and lobby, is on schedule to relocate in 2023. St. Francis College moved its campus this fall to 255,091 square feet of customized space at The Wheeler in downtown Brooklyn owned by Tishman Speyer. The 10-story building was constructed atop Macy’s at 181 Livingston St. The college has a dedicated entrance on Livingston Street.
5 Hanover details
CIM Group acquired 5 Hanover Square in August 2013 from Savanna Fund II REIT for $104 million. Located on the northern side of Hanover Square, between Pearl and Beaver streets, the building also has about 7,500 square feet of retail on the ground floor. It was constructed in 1962 and has 15,500-square-foot floorplates. In addition to The IDEAL School, approximately 30,000 square feet of lease renewals at 5 Hanover Square have been executed recently.
Eliza Gordon, John Wheeler and Mitch Konsker from JLL handled the transaction on behalf of Los-Angeles based CIM Group. The IDEAL School was advised by Brent Ozarowski and Leslie Harwood of Newmark.
For more than a decade, CIM Group has been an active owner and developer in the New York metropolitan area. CIM has successfully repositioned several office assets in New York City, attracting quality office and retail tenants.
