J.P. Morgan Inks 305K-SF 5 Manhattan West Deal to Expand Tech Arm



J.P. Morgan Chase has signed a 15-year, 305,000-square-foot lease at Brookfield Property Partners’ 5 Manhattan West to triple its offices in the building, a spokesman for the landlord said.

The bank’s technology team, known as FinTech, is expanding from its entire 123,000-square-foot ninth floor offices at the property between Ninth and 10th Avenues (with an alternative address of 450 West 33rd Street) to a footprint of 428,000 square feet.

J.P. Morgan has occupied space in the 16-story structure since 2015 and had been working on the deal for the top three floors, as Commercial Observer previously reported. The asking rent for the new space was in the $90s per square foot, CO noted in April.

Since moving into the building two years ago, the tech arm has grown to 650 employees. This led bank executives to seek more space as J.P. Morgan expects to expand to 2,000 to 2,500 employees at the building in coming years, according to The Wall Street Journal, which first reported on the deal closing. J.P. Morgan hopes to move into the new spaces in 2018 and 2019, according to a spokesman for the bank.

The 1.8-million-square-foot Brutalist-styled concrete structure was known as one of the “ugliest buildings” in the city until Brookfield renovated it into an all-glass building, as CO reported. Architect Joshua Prince-Ramus of REX designed the $300 million makeover. The property is part of Brookfield’s five-building, approximately 8-million-square-foot development called Manhattan West.

“5 Manhattan West’s transformation from a concrete warehouse building into a striking, state-of-the-art office property is luring innovative, growing companies, and J.P. Morgan’s decision to expand there is the latest example,” Ric Clark, senior managing partner and chairman of Brookfield, said in a statement. “We recognized the unique features of the building, including 100,000-square-foot plus floor plates and floor-to-ceiling windows, would be attractive to firms, but the market’s reaction to the newly re-launched building has already greatly exceeded even our high expectations.”

Cushman & Wakefield’s Bruce Mosler, Josh Kuriloff, Rob Lowe, Ethan Silverstein, Matthias Li and Whitney Anderson represented Brookfield. A spokesman for C&W did not immediately return an inquiry seeking comment. It was not clear which broker represented J.P. Morgan.

E-commerce giant Amazon is also considering a 350,000-square-foot office deal at 5 Manhattan West, as CO reported in April.

Since its renovation, 5 Manhattan West has attracted other big tenants, including advertising company R/GA and Whole Foods Market.

Amazon, JP Morgan Close to Signing Monster-Sized Deals at Manhattan West



J.P. Morgan Chase and Amazon are both weighing deals for at least 300,000 square feet of office space at 5 Manhattan West, Commercial Observer has learned.

The bank, which has occupied 125,000 square feet in the building since 2015, is considering taking an additional 300,000 square feet there—or the top three floors—for its financial technology arm, also known as FinTech, a source with knowledge of the deal said.

Meanwhile, Amazon is mulling 350,000 square feet for offices in 5 Manhattan West, a 16-story, 1.8-million-square-foot office building at 450 West 33rd Street. The office asking rent in the building is in the $90s per square foot, the source said.

Recently Whole Foods Market signed a retail lease for 60,000 square feet at the property. And in early March, Brookfield announced the opening and leasing launch of The Eugene, a 62-story residential tower at Manhattan West, which is an eight-acre, six-building mixed-use development stretching from Ninth to 10th Avenues and West 31st to West 33rd Streets. It marks the first new building to open at the mixed-use project.

Cushman & Wakefield’s Bruce Mosler is handling office leasing at the property. He didn’t respond to a request for comment.

Landlord Brookfield Property Partners declined to comment via a spokesman as did a spokeswoman for J.P. Morgan. Amazon didn’t immediately respond to a request for comment.




Financial firm takes 125K sf at Brookfield Place

Brookfield Place at 200 Vesey (Credit: Brookfield Place via Facebook)

Brookfield Place at 200 Vesey (Credit: Brookfield Place via Facebook)

Brookfield Place, formerly known as World Financial Center, went back to its roots and signed financial brokerage Tullett Prebon to a 125,000-square-foot lease.

The company will move into the fifth and part of the sixth floor at 200 Vesey Street in 2018, Crain’s reported. It is moving from Jack Resnick & Sons’ 199 Water Street.

JLL’s Scott Panzer and Shannon Rzeznikiewicz represented Tullett, while the landlord was represented in-house. Asking rents at the complex are in the $50s per square foot.

Earlier this month, the Royal Bank of Canada renewed a 400,000-square-foot lease at Brookfield Place.

The complex has signed several large media tenants in recent years, shifting its tenant makeup away from financial firms.

Brookfield is currently shopping a 49 percent stake in the property.  [Crain’s] — Konrad Putzier


Royal Bank of Canada renews 400K sf at Brookfield Place

Brookfield Place

Brookfield Place

Royal Bank of Canada renewed its 400,000-square-foot lease at 200 Vesey Street in Lower Manhattan at Brookfield Place through at least 2032.

The bank, Canada’s largest lender by assets, had a lease expiration coming in 2022, but decided to renew early for at least 15 years, Bloomberg reported.

RBC will continue to be the second-largest occupier at Brookfield Property Partners’  2.1 million-square-foot tower, which is part of its 8.4 million-square-foot Brookfield Place complex.

American Express owns the 1.3 million square feet it occupies in the building.

Brookfield refinanced 200 Vesey in December with a $290 million loan from Wells Fargo.

RBC executives said they had considered moving to other properties in Lower Manhattan as well as towers at Hudson Yards and other Brookfield buildings before deciding to renew.

One factor in staying, the bank’s head of corporate real estate for the U.S. said, was to remain close to its offices in the Goldman Sachs Group tower in Jersey City, which is just one stop away on the PATH train across the Hudson River.

The rent in the deal was not disclosed.

“You’re always concerned when tenants start to look at the market, but Lower Manhattan provides a real basis for demand from tenants,” Brookfield vice president David Cheikin said. “What it offers is a great amenity base for employees, and a great commuting base for their employees. We continually hear from tenants it reaffirms their ability to attract and retain talent.”

A team at Cushman & Wakefield led by Bruce Mosler represented RBC, while an in-house team negotiated for Brookfield.

Brookfield is shopping a 49-percent stake in the complex that could value it at $5 billion. [Bloomberg] – Rich Bockmann

BlackRock narrows HQ search down to three locations

One World Trade Center and BlackRock’s Larry Fink

One World Trade Center and BlackRock’s Larry Fink

Asset manager BlackRock narrowed its list of potential new headquarters locations down to three: The Durst Organization’s One World Trade Center, the Related Companies and Oxford Properties Group’s Hudson Yards and Brookfield Property Partners’ Manhattan West.

The company currently occupies around 700,000 square feet in two buildings – 55 East 52nd Street and Rudin Management Company’s 40 East 52nd Street – where its lease expires in 2023. The Real Deal reported in February that it tapped a JLL team headed by Peter Riguardi to find a new, larger office space.  According to the Wall Street Journal, BlackRock is looking to lease 850,000 square feet at a possible annual rent of around $60 million.

One World Trade Center was 69 percent leased as of early June, and landing Blackrock would bring the 3 million-square-foot tower close to full occupancy. Hudson Yards, meanwhile, has already landed major finance tenants Wells Fargo and fund manager KKR.

BlackRock's employee count has grown from 5,341 at the end of 2008 to currently 13,000. As banks and other Wall Street firms suffered from the aftermath of the 2008 financial crisis and stricter financial regulation, asset managers like BlackRock and the Blackstone Group have captured market share.

[WSJ] – Konrad Putzier,

The Real Deal, Asset manager considering 1 WTC, Hudson Yards and Manhattan West
July 27, 2016 05:40PM