Yext Moving Headquarters to Chelsea Building Abandoned by Aetna -- Update

By Colin Kellaher

Yext Inc. (YEXT) on Monday said it will take over the New York City office that health insurer Aetna Inc. abandoned as its new headquarters after it agreed to be acquired by CVS Health Corp. (CVS).

The New York software developer said it will sublease the entire 142,500-square-foot office portion of 61 Ninth Ave. in Chelsea from Aetna for its new headquarters through February 2031.

Yext, which has about 1,000 employees, said it expects create 500 new jobs over the next five years and to invest more than $150 million in the building over the next dozen, including rent.

Aetna in mid-2017 announced plans to move its corporate headquarters, along with 250 jobs, from Hartford, Conn., to the 165,000-square-foot building developed by Vornado Realty Trust (VNO) and Aurora Capital Associates across the street from Google's New York headquarters.

But CVS, which in December 2017 agreed to buy Aetna in a $69 billion deal, early last year said it would keep Aetna's headquarters in Hartford.

Starbucks Corp. (SBUX) in December opened a 20,000-square-foot, three-story Reserve Roastery at the building.

Yext, which currently occupies about 100,000 square feet at SL Green Realty Corp.'s (SLG) 1 Madison Ave. in the Flatiron District, said it is targeting March 2020 for the move. The company said it will pay an initial monthly base rental rate of about $1 million starting in October 2020, with an increase to about $1.1 million in January 2025.

SL Green in December announced plans for a sweeping redevelopment of the Madison Avenue building.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

April 29, 2019 15:25 ET (19:25 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.