From left: Google’s headquarters at 111 Eighth Avenue and WebMD CEO David Schlanger
Google paid WebMD an undisclosed sum of money to move out of its headquarters at 111 Eighth Avenue.
WebMD is moving to 395 Hudson Street, as previously reported by The Real Deal, where it is subletting from Kaplan Test Prep and will occupy 150,000 square feet, according to Crain’s. In turn, Kaplan is relocating to 750 Third Avenue.
Kaplan sweetened the pot for the medical website, providing money upfront to help pay for construction of a brand new office, according to Crain’s. Kaplan will earn that money back by charging higher rent — in the $50s per square foot — than the original asking price.
“WebMD wants to build a very impressive, totally modern office, and we wound up reaching a deal that will help them do that,” Newmark Grubb Night Frank broker Kyle Ciminelli, who represented WebMD in the deal, told Crain’s.
Google has been taking back space in its massive Chelsea headquarters, the website reported. With its new office, which spans the entire third and fourth floors of 395 Hudson Street, WebMD is expanding by roughly 50 percent. [Crain’s] — Claire Moses