Next Up In City Tavern Space: All’Onda

The Union Square area is becoming a high-tech hotbed. Mashable CEO Pete Cashmore was interviewed about why he brought his company here:

Last September, Pete Cashmore moved Mashable’s headquarters from 23rd Street to the heart of Union Square. What he found when he arrived was a climate he says is perfect for startups.

Factors that play into the business climate he found just a few blocks south of Mashable’s previous location include a fertile history of innovation, access to creative talent, and proven professionals. But in the end, what’s most attractive to Cashmore is good, old-fashioned, face-to-face interactions.

“Union Square has always been a meeting place, where people come together and share ideas,” Cashmore told me on Tuesday at an event at the British Residence of New York. “And now with it becoming a real hub of innovation it is a great place to be.”

Now employing about 140 people, Mashable’s offices occupy two floors on Fifth Avenue and 17th Street.

No doubt, part of what Cashmore found there was nurtured by venture capital firm, Union Square Ventures (USV), which was founded in 2004 and now manages $1 billion in assets across six funds. USV’s previous investment in New York City-based companies include Etsy (Nasdaq: ESTY), Tumblr (acquired by Yahoo for $1.1 billion), and MongoDB, which has raised $311 million venture capital.

But over the past year, the number of significant real-estate investments in Union Square shows that it’s much more than just Fred Wilson’s influence at work in the area.

The top three lease transactions of 2015 are BuzzFeed, which now occupies 194,000 square feet at 225 Park Avenue South, Gawker Media, which is in 58,900 square feet at 114 Fifth Avenue, and First Look Media in 58,206 square feet at the same location, according to a Union Square Partnership report published in May. New and expanded office tenants in Union Square also include Dropbox, Adobe Systems Inc. Hulu, Lippe Taylor, Pop2Life, Capital One Labs, The New Republic, and Compass.

The top sector in the area is “professional, scientific, and tech services,” with 1,514 firms, followed by retail with 1,393 firms. Among the top firms by number of employees is J. Crew, listed with 3,800 employees and Tory Burch, with 1,800. In total, 9,700 businesses are located within the half-mile radius of Union Square considered by the report, employing over 153,000 people.

What’s attracting all this talent? Not the rent. According to a May report by San Francisco-based real estate analytics firm Zumper, only two neighborhoods are more expensive than Greenwich Village, where Union Square technically is designated as being located. Average rent for a one bedroom apartment costs $3,850. In Chelsea it’s $3,920, and in Tribeca, $4,450. According to the same report, New York City was the second most expensive city in the United States, just behind San Francisco.

In an interview Wednesday, Union Square Partnerships managing director Scott Hobbs ventured his own theory as to why so many innovative companies are moving to his neighborhood. “The biggest reason is it’s a transportation hub,” he said. “You’ve got Williamsburg for creatives across the river, and midtown for business.” Trains that depart Union Square Station are the N, R, Q, 4, 5, 6, and L.

As for Cashmore, his explanation is much more simple. “What’s really great about Union Square is you can go get a coffee and bump into someone doing something interesting in tech,” he said.

The Times has an article about the arcane and contradictory rules governing what can and can’t be sold in the Union Square farmer’s market. Bottom line: it’s a mess.

Here’s the official word on how the renovations are going:

Spring weather has brought with it a flurry of activity in Union Square Park, both in the new playground and at the construction site.  Parents and kids have been taking full advantage of the warm sunny days by swinging, climbing and sliding their way out of the winter doldrums.  The Partnership’s new landscape efforts, including more than 260 ornamental shrubs and 650 perennials, will soon be underway, as well as the creation of additional seating opportunities in the center lawn, in front of the new Pavilion entrance and around the James Fountain (a/k/a Mother & Child).

In construction news, structural work on the Pavilion columns and ceiling beams has finished at last, and the protective plywood barriers have been removed from the front of the building, exposing the beautifully restored neo-classical interior to passersby.  As the Pavilion elevator is installed and tested, interior lighting fixtures, gates and handrails round out the final touches of building restoration work.

Park visitors can soon make use of the restroom facilities as they, too, near completion.  Last week, eco-resin panels were mounted above the granite walls to enclose the building, allowing the final plumbing fixtures to be installed.  Once complete, the Parks Department will work closely with the Department of Buildings to inspect all systems in order to open the facilities for the busy summer season.

The City Tavern across 13th St. has closed.

Manhattan-based fans the of Indian culinary institution Jackson Diner will once again have to hop the subway to Queens to get their fix. The University Place outpost, which opened in 2010 with its primo cheap eats lunch buffet, closed this weekend, and it won’t be returning. Owner Manjit Singh told DNAinfo that the restaurant’s lease had expired and that the landlord planned to raise the rent to an unspecified amount. Already paying $25,000 a month, Singh decided it was best to leave. This morning, a sign with the name of the closest Indian Restaurant — Curry Kitchen on 8th Street — was posted outside the restaurant. No word yet on who will take over the space.

D’agostino’s is long gone, and Agata and Valentina had to vacate so that the undistinguished building can be demolished and replaced by retail and apartments. Should be an interesting build. How high? Unknown at this time.