Wealth Management Firm for Blackstone Co-Founder Moves Within Midtown



Peterson Management, which manages the family assets of Peter Peterson,Blackstone Group co-founder and former Lehman Brothers chief executive officer, is heading to the former Citigroup headquarters on Park Avenue.

The firm will relocate from 26,000 square feet at Paramount Group’s 712 Fifth Avenue to 40,000 square feet of offices at Boston Properties’ 399 Park Avenue, The Real Deal reported. The outfit led by Peterson’s son, Michael Peterson, will set up shop in a penthouse-like space that includes outdoor terraces and a glass box constructed on top of the building’s setback. Rents in the 15-year lease start at $130 a square foot and rise to $150 a square foot towards the end of the term, according to TRD.

Seth Hecht of Cushman & Wakefield and Joseph Conwell of Philadelphia-based GPX Realty Partners represented Peterson. (GPX Realty is a subsidiary of private investment firm GPX Enterprises, another company headed by Michael Peterson.) It wasn’t immediately clear who represented the landlord.

A spokesman for C&W declined to comment, and Boston Properties’ spokeswoman didn’t respond to a request for comment.

The wealth management company will relocate along with the nonprofit Peterson Foundation, which Peter Peterson launched in 2008 to focus on fiscal sustainability and national debt.



Welsh, Carson inks 31K sf lease at Boston Properties’ 599 Lex

599 Lexington Avenue (Credit: Boston Properties)

599 Lexington Avenue (Credit: Boston Properties)

UPDATED, March 1, 5:26 p.m.: Private equity shop Welsh, Carson, Anderson & Stowe is moving its office from Park Avenue to Boston Properties’ 599 Lexington Avenue, where the firm signed a lease for 31,000 square feet.

Welsh, Carson – which focuses primarily on the healthcare and tech fields – signed an 11-year lease at the nearly 1 million-square-foot tower between East 52nd and East 53rd streets, sources told The Real Deal.

The deal covers part of the 17th floor, where the starting rent was in the low $80s per square foot, and part of the 18th floor, where the rent starts in the mid $80s per square foot, according to CompStak.

Representatives for Welsh Carson and Boston Properties were not immediately available for comment.

The private equity firm, founded in 1979, took a majority stake last month in the iPad point-of-sale startup Revel Systems, which was valued at roughly $540 million after its last fundraise in 2015.

Welsh, Carson currently occupies 30,000 square feet two blocks away at Mutual of America Life Insurance Company’s 320 Park Avenue.

Boston Properties’  50-story tower was 96.8 percent leased at the end of the fourth quarter, according to the company’s most recent filings with the Securities and Exchange Commission.

The building is home to other finance tenants such as Fort Management and the Cowen Group, as well as the law firms Kirkpatrick & Lockhart and Grunfeld DeSiderio Lebowitz Silverman & Klestadt.

In addition to 599 Lexington, Boston Properties also owns the 59-story 601 Lexington Avenue across the street and the adjacent 200,000-square-foot building next door at 159 East 53rd Street.

The landlord is in the midst of a $50 million upgrade to 159 East 53rd Street that includes adding a food hall and dining space, amenities it hopes will make its Lexington Avenue towers more attractive to tenants.

A team led by Peter Turchin at CBRE handles leasing in the building. CBRE’s Mary Ann TigheKen Meyerson and Ben Friedland represented Welsh Carson.



Fairstead Capital Relocating Its Offices to 250 West 55th Street



Real estate investment firm Fairstead Capital has inked a deal to relocate to Boston Properties’ 250 West 55th Street between Broadway and Eighth Avenue, according to a press release from CBRE.

The company will take 15,050 square feet on part of the 35th floor of the 989,000-square-foot building, according to CBRE, which represented both sides in the deal. The lease is for 10 years. Asking rent in the transaction was not immediately available.

Currently Fairstead Capital is based a few blocks away in Carnegie Hall Tower at 152 West 57th Street, according to its website. It wasn’t immediately clear how much the company leases at the building between Avenue of the Americas and Seventh Avenue.

CBRE’s Taylor Scheinman and Stephen Siegel, also an investor at Fairstead Capital, represented the tenant, while colleagues Christie Harle, Caroline Merck, Sam Seiler and Peter Turchin represented the landlord. 

“We are happy to add Fairstead Capital to the terrific tenant roster at 250 West 55th Street,” Turchin said in a statement via a spokeswoman. “With the close of this deal, we have only one full floor remaining in the building.”

Finance and investment firms are no stranger to the Midtown tower. In January 2016, Sachem Head Capital Management signed a 14,542-square-foot lease at the property, as Commercial Observer previously reported. Commercial mortgage banking and investment firm Dwight Capital leases 5,800 square feet on the 30th floor.

Shuttered news channel Al Jazeera America was once slated to 85,000 square feet at the four-year-old property in a lease running into 2035. But stateside operations for the Qatari news service ended last year, leading the company to vacate a chunk of 250 West 55th Street. Al Jazeera wound up paying $45 million to Boston Properties for the abandoned lease, as CO reported in February 2016.


BlackRock zeroes in on 50 Hudson Yards for Headquarters

Rendering of 50 Hudson Yards (credit:   New York YIMBY  )

Rendering of 50 Hudson Yards (credit: New York YIMBY)

BlackRock is in talks with Related Companies to move its headquarters to 50 Hudson Yards.

The asset manager is negotiating to take 850,000 square feet at the planned 62-story office tower, the Wall Street Journal reported. The firm, which manages $5.1 trillion in assets, had also eyed Tishman Speyer’s the Spiral at 509 West 34th Street, but, according to the Journal, seems to be leaning toward Related’s property. If the deal goes through, it would be one of the biggest office leases in the city this year.

BlackRock currently leases 700,000 square feet in two buildings – Fisher Brothers and Soho China’s 55 East 52nd Street and Rudin Management’s 40 East 52nd Street. The leases expire in 2023. At last check, the average asking rents for flashy office space in Midtown was about $82 per square foot. That translates to BlackRock spending $69.7 million annually for the space at 50 Hudson Yards, though rent will likely vary.

The firm is expected to make a final decision as early as by the end of November.

A JLL team is leading the BlackRock’s search, as The Real Deal first reported in February. [WSJ] — Kathryn Brenzel

Asset Manager Renews 31K-SF Lease at 601 Lexington Avenue



BTG Pactual, an investment bank, asset manager and wealth manager with a big presence in Latin America, yesterday signed an 11-year renewal for 31,401 square feet at 601 Lexington Avenue, a source with knowledge of the deal told Commercial Observer.

The public company occupies the entire 57th floor at the 59-story Class A office building, formerly known as Citigroup Center, between East 53rd and East 54th Streets. There was no official asking rent.

Brian Goldman and Josh Friedman of Newmark Grubb Knight Frank represented BTG Pactual in the deal. The landlord, Boston Properties, was represented in-house. Spokeswomen for both companies declined to comment.

The building’s largest tenant is international law firm Kirkland & Ellis, which takes up 400,000 square feet. Other tenants include Blackstone Group, which occupies 90,000 square feet and private equity firm Apax Partners, which is in 31,400 square feet.

The 1.7-million-square-foot building at 601 Lexington Avenue was designed by Hugh Stubbins & Associates and Emery Roth & Sons and erected in 1977. Boston Properties bought the building in 2001 for $750 million with Allied Partners, which later sold its share to Boston Properties. In 2014, Boston Properties announced it sold a 45 percent interest in the building to affiliates of Norges Bank Investment Management for $1.83 billion, a deal that included a 45 percent interest in two buildings in Boston.