Art Dealer to Billionaires Gobbles Up Space in NYC’s Chelsea

(Bloomberg) -- Larry Gagosian's art-gallery empire, already the world's largest, is taking over more space in New York's Chelsea district.

Gagosian is renting 7,900 square feet (734 square meters) adjacent to his 26,000-square-foot gallery on West 24th Street. Kyle Kirkpatrick, a spokesman for landlord Weinberg Properties, confirmed that Gagosian agreed to a long-term lease, declining to disclose further details.

For almost 20 years, the space had been divided into two galleries, one run by Mary Boone, who since May has been serving a 30-month federal prison sentence for tax evasion. The other was most recently occupied by Pace Gallery, which will consolidate its multiple New York venues into a new, eight-story building on West 25th Street.

“Both halves were free,” said Ron Warren, former partner at Mary Boone Gallery, which had to close as part of the sentencing. “Coincidentally, he was planning to renovate next door. It was a great opportunity.”

Gagosian's operation, which has 17 sites worldwide, is freshening up its facilities in New York. It's currently upgrading spaces on Madison Avenue. The cavernous West 24th Street gallery will be next, though not for some time because exhibitions are planned into 2020, according to people with knowledge of the matter.

A representative for Gagosian declined to comment. The dealer, whose clients include billionaires Steve Cohen and Leon Black, has another Chelsea gallery on West 21st Street.

Mary Boone Gallery paid more than $50,000 a month for its space, which has an 1,800-square-foot, column-free exhibition floor and 24-foot ceilings featuring wooden trusses, Warren said. Pace had equal square footage but a different design, according to Kirkpatrick.

Pace is slated to open its 75,000-square-foot flagship next month, with works by Alexander Calder, David Hockney and emerging artist Loie Hollowell. Weinberg Properties developed the building, which has indoor and outdoor exhibition areas, in coordination with Pace President Marc Glimcher.

Other major art dealers are also bolstering their presence in Chelsea. Hauser & Wirth is developing a five-story, 36,000-square-foot building on West 22nd Street designed by architect Annabelle Selldorf. It's expected to open next spring, spokeswoman Andrea Schwan said.

David Zwirner will add 50,000 square feet in a Renzo Piano-designed tower on West 21st Street, with a planned opening in 2021, according to spokeswoman Julia Lukacher.

To contact the reporter on this story: Katya Kazakina in New York at kkazakina@bloomberg.net

To contact the editors responsible for this story: Pierre Paulden at ppaulden@bloomberg.net, Christine Maurus, Peter Eichenbaum

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