Financial Services Firm StepStone Group Takes 30K SF at 450 Lex

450 LEXINGTON AVENUE. PHOTO: RXR REALTY

450 LEXINGTON AVENUE. PHOTO: RXR REALTY

StepStone Group, a financial services firm, has signed on for 30,000 square feet at RXR Realty’s 450 Lexington Avenue between East 44th and East 45th Streets, Commercial Observer has learned.

The tenant will occupy the entire 31st floor in the 39-story, 910,273-square-foot building via a 10-year lease, a spokeswoman for RXR indicated. The asking rents in the top of the tower, where RXR has rolled out prebuilts, range from $115 to $130 per square foot. StepStone will replace JLL Partners when the new tenant moves from the Lipstick Building at 885 Third Avenue on Aug. 1.

RXR boasts that it has done 40,000 square feet of new leasing in the building since January. RXR picked up the property via a ground lease in September 2012 for $720 million, property records indicate. The seller was Istithmar World, the Dubai-based investment firm, as CO reported at the time. Tenants include David Polk Wardwell.

RXR’s Lauren Ferrentino represented the landlord in-house along with CBRE‘s Silvio Petrillo. A spokeswoman for CBRE said the broker declined to comment, but CBRE’s Michael Affronti said in a prepared statement provided by RXR: “450 Lexington Avenue is an exceptional asset, and the success we continue to achieve certainly comes as no surprise. The building’s close proximity to Grand Central, panoramic views, high-end installations and strength of ownership are just a few of the components that continue to attract prominent firms to 450 Lexington Avenue.”

Savills Studley’s David Carlos represented the tenant in the deal.

https://commercialobserver.com/2018/02/stepstone-group-lease-450-lexington-avenue-rxr-realty/

Carlyle Group mulls space at One Vanderbilt

Rendering of One Vanderbilt and Marc Holliday (Credit: SL Green)

Rendering of One Vanderbilt and Marc Holliday (Credit: SL Green)

Global investment firm Carlyle Group is in talks for four floors at SL Green Realty’s One Vanderbilt.

The firm is the latest tenant to consider taking space at the 1.7 million-square-foot office tower, the New York Post reported. Management consulting firm McKinsey & Co. is also reportedly looking at 250,000 square feet at the project.

Germany’s DZ Bank and DVB Bank recently inked a lease for 35,500 square feet on the 26th floor. The bank was the first office tenant to sign on to the building since TD Bank, which inked a long-term lease as One Vanderbilt’s anchor tenant in 2014.

In April, chef Daniel Boulud agreed to open a restaurant on the tower’s second floor. The restaurant will span 11,000 square feet, and Boulud will invest in the project rather than signing a traditional lease. [NYP]— Kathryn Brenzel

https://therealdeal.com/2017/10/24/carlyle-group-mulls-space-at-sl-greens-one-vanderbilt/

Financial Tech Company Takes Full Floor at Minskoff’s 1166 Avenue of the Americas

1166 Avenue of the Americas

A spinoff of D.E. Shaw & Co. has signed its own deal at 1166 Avenue of the Americas—the home of its former parent company.

Arcesium, a technology firm specializing in financial services, has signed a 39,074-square-foot lease for the entire fourth floor, according to a press release from JLL, the landlord’s leasing agent.

Asking rent in the deal was $78 per square foot, according to a spokesman for the brokerage, who declined to disclose the length of the lease. CoStar Group indicates that it’s a 10-year deal, however, that runs through January 2027.    

D.E. Shaw & Co. leases a sizeable chunk of the 1.6-million-square-foot building with 195,000 square feet on the fifth through ninth floors. The hedge fund sponsor renewed that foothold in April for an undisclosed length, as Commercial Observer previously reported.

The firm announced with Blackstone Alternative Asset Management in March 2015 that it would launch Arcesium as an independent company. Arcesium would start with 300 employees with the plan to expand by 100, according to a press release at the time.

The deal comes as landlord Edward J. Minskoff Equities proceeds with a renovation of the lobby of the property between West 45th and West 46th Streets, according to The Wall Street Journal, which first reported news of the deal. The Gensler-designed overhaul includes new lighting and will feature multiple art installations, the JLL release indicates.

Paul Glickman, Cynthia Wasserberger, Jonathan Fanuzzi and Diana Biasotti of JLL represented the landlord, while Timothy Dempsey, Roger Griswold and Munish Viralam of CBRE represented the tenant. A CBRE spokeswoman did not immediately return a request for comment.

In prepared remarks, Glickman said the building is “a premier asset in an ideal location,” noting its location on Avenue of the Americas and its proximity to Grand Central Terminal, Pennsylvania Station and the Port Authority Bus Terminal.

 

https://commercialobserver.com/2016/11/financial-tech-company-takes-full-floor-at-minskoffs-1166-avenue-of-the-americas/

Private Equity Firm ZMC Advisors Moving to East 59th Street

110 EAST 59TH STREET. PHOTO: COSTAR GROUP

110 EAST 59TH STREET. PHOTO: COSTAR GROUP

ZMC Advisors, originally known as Zelnick Media Capital, is relocating to 13,284 square feet at 110 East 59th Street, a source with knowledge of the deal told Commercial Observer, so it can expand and be closer to its investors and investments. The company will occupy the entire 24th floor of the 612,181-square-foot building between Lexington and Park Avenues, the source said.

In the second quarter of 2017, ZMC, which was founded by Strauss Zelnick in 2001, will move from a roughly 11,000-square-foot space at 19 West 44th Street between Fifth Avenue and Avenue of the Americas via an 11-year deal. The asking rent was $85 per square foot.

JLL’s Alexander Chudnoff and Dan Turkewitz represented the tenant in the deal and Dennis Brady and Fran Delgorio of Jack Resnick & Sons represented the landlord in-house. The tenant’s brokers did not immediately return a request for comment via a spokesman.

“We’re delighted to add ZMC to our prestigious tenant roster at 110 East 59th Street,” Brady said in a statement via a spokeswoman. “We are confident that they will benefit from the building’s strategic location near some of the finest hotels, shops and restaurants in Midtown.”

Cantor FitzgeraldEstée LauderIMAX Corporation and RP Management are prominent tenants in the 37-story Class A building that Jack Resnick & Sons erected in 1969.

 

https://commercialobserver.com/2016/11/private-equity-firm-zmc-advisors-moving-to-east-59th-street/

Investment Manager Staying Put at SL Green’s 600 Lexington Avenue

600 LEXINGTON AVENUE.

600 LEXINGTON AVENUE.

An international investment firm has re-upped its three-floor lease at SL Green Realty Corp.’s 600 Lexington Avenue.

Commercial Observer has learned that MKP Capital Management has renewed for more than five years at the building between East 52nd and East 53rd Streets. The firm currently occupies the 16th through 18th floors, according to a press release provided by the landlord.

An SL Green spokeswoman said the investment manager has been based at the 300,000-square-foot property since 2010. Asking rent in the renewal was $85 per square foot, she added.

SL Green leasing chief Steven Durels noted in prepared remarks that the 36-story tower is “a magnet for financial firms because of its boutique-size floors flooded with natural light, floor-to-ceiling windows and upscale lobby.”

John Mambrino and Evan Margolin of Savills Studley represented the tenant and declined to comment via a spokeswoman. Larry Swiger represented SL Green in-house.

Popular sandwich shop Pret A Manger signed a deal in June 2014 to occupy a portion of the building’s retail section, as CO reported at the time. The eatery took a  corner section at the Midtown property.

Some of the other office tenants at the building include Nissan and aviation firm NetJets, a Berkshire Hathaway subsidiary. 

https://commercialobserver.com/2016/10/investment-manager-staying-put-at-sl-greens-600-lexington-avenue/

Broker-dealer inks 22K lease at SL Green’s 521 Fifth Avenue

Asking rent was $70 per sf

Asking rent was $70 per sf

Broker-dealer KGS-Alpha Capital Markets is taking more than 20,000 square feet in SL Green Realty’s 521 Fifth Avenue.

The company inked a lease for 22,368 square feet at the 503-foot-tall office tower, formerly known as the Lefcourt Colonial Building. The asking rent was $70 per square foot, the New York Post reported. KGS is moving from its current location at Boston Properties’ 601 Lexington Avenue, where it reportedly subleases about 30,000 square feet.

Cushman & Wakefield’s Tara Stacom, Justin Royce, Matthias Li and Barry Zeller represented SL Green. KGS was represented by Savills Studley’s Jeffrey Peck, Daniel Horowitz and Chris Foerch.

SL Green bought the building in 2006 as part of a joint venture, but took complete control of the property in 2011. In 2012, the real estate investment trust sold a 49.5 percent equity interest at the tower to Plaza Global Real Estate Partners for $72 million. Other tenants in the 409,000-square-foot building include RKF, CFC Capital and Equinox Fitness.

https://therealdeal.com/2016/10/04/broker-dealer-inks-22k-sf-lease-at-sl-greens-521-fifth-avenue/

Park Avenue braces for 2M sf of empty office space

Citibank, Major League Baseball plan to move in next few years

It may get a whole lot easier to find office space on Park Avenue pretty soon, as a series of upcoming departures is set to leave landlords with roughly 2 million square feet to fill.

From left: 277 Park Avenue, 270 Park Avenue, 299 Park Avenue and 425 Park Avenue

From left: 277 Park Avenue, 270 Park Avenue, 299 Park Avenue and 425 Park Avenue

The vacancies — courtesy of tenants like Citibank, Major League Baseball and others — could impact 10 percent of the office submarket, which stretches from East 45th to East 59th streets, Crain’s reported.

In addition to Citibank and MLB, other major tenants are weighing their options, including investment firm BlackRock , which could leave its 700,000 square foot digs at 345 Park and 40 East 52nd Avenue and move to Hudson Yards or the World Trade Center when its lease expires in 2023. JPMorgan Chase, meanwhile, is planning to leave its 300,000-square-foot digs at 277 Park in order to consolidate at 270 Park and 383 Madison Avenue.”What you’re seeing is a migration to newer product,” said CBRE’s Mary Ann Tighe. “The age of these buildings is catching up to them.”

According to data from Cushman & Wakefield, Park Avenue offices have an average age of 55.6 years, and many have lower ceilings and structural columns. Meanwhile, many finance companies — which currently occupy roughly 70 percent of Park Avenue’s 22 million square feet of space — are weighing smaller spaces in light of shrinking profits.

Landlords say the vacancies are a number of years away, giving them ample time to find new tenants. And some are looking at the impending vacancies as an opportunity to upgrade their properties or diversify their tenant base.

At 299 Park, Boston Properties is spending $50 million to upgrade the building after Citibank vacates 385,000 square feet next year. “Large tenants have left Park Avenue before, and the space always gets filled,” said John Powers, who heads Boston Properties’ New York office.

Meanwhile, L&L Holding Co. is currently building 425 Park, a 670,000-square-foot tower where hedge fund Citadel has already committed to 200,000 square feet at an average of $175 per foot, including a penthouse space that rents for roughly $300 per square foot.

And Vornado Realty Trust — responding to expectations that the city could rezone part of Midtown East — is attaching clauses to its leases at 350 Park to allow it to clear out the building and replace it with a state-of-the-art spire.

[Crain’s]E.B. Solomont, The Real Deal, August 22, 2016 11:00AM