Investment Adviser Ditches Park Avenue Digs for Lexington Avenue Address



Peconic Partners, an investment adviser and management company, has signed an 8,623-square-foot lease for 10 years at Boston Properties’ 599 Lexington Avenue, according to the landlord’s broker, CBRE.

The financial consulting firm will occupy the entire 46th floor of the 47-story building between East 52nd and East 53rd Streets. The asking rent in the deal was $110 per square foot.

Peconic is moving a few blocks east from the 30-story 350 Park Avenue between East 51st and East 52nd Streets, where it has 3,600 square feet on the top floor, according to CoStar Group.

A CBRE team of Peter Turchin, Christie Harle, Arkady Smolyansky, Evan Fiddle and Caroline Merck represented Boston Properties in the deal. Marc Shapses and John Johnson of Savills Studley brokered the transaction for Peconic.

“Peconic was drawn to the spectacular city-wide views and exciting changes underway in the neighborhood surrounding 599 Lexington Avenue where Boston Properties is investing an additional $260 million at 399 Park Avenue and 601 Lexington Avenue, which are directly across from 599 Lexington,” Harle said in a prepared statement.

Boston Properties recently completed a $15 million renovation of 599 Lexington Avenue, which included a redesigned lobby by FXFOWLE upgrades to the interiors of the elevator cabs and a modernization to the mechanical systems.

Shapses and Johnson did not immediately respond to a request for comment via a spokeswoman for Savills Studley.


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.

Information Technology Service Provider Inks 18K-SF Renewal in Midtown



Technology solutions provider Eze Castle Integration has signed a 17,925-square-foot renewal at Silverstein Properties’ 529 Fifth Avenue, Commercial Observer has learned.

The company, which provides cloud and information technology (or IT) support services for hedge funds and private equity firms, will stay put on the entire seventh floor of the building for an additional seven years, information provided by the landlord. It has been a tenant in the 20-story building between East 43rd and East 44th Street since 2005. The asking rent in the transaction was not immediately clear.

“Our recently completed lobby renovation at 529 Fifth Avenue has created a fully modernized environment for our tenants in a central location near all that Midtown has to offer,” said Roger Silverstein, an executive vice president of Silverstein Properties. Silverstein handled negotiations alongside colleagues Joseph Artusa and Camille McGratty.

Silverstein’s renovation of the building included new storefront entrances, elevator cabs and turnstiles, and marble walls and floors.

The 282,278-square-foot tower is home to tenants such as Citrin Cooperman and Moffatt & Nichol.

Eze Castle Integration was represented by Ben FriedlandMichael Movshovich and Taylor Scheinman of CBRE. The brokers did not respond to a request for comment via a spokeswoman.

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.



Steve Cohen’s personal fund leases 175K sf at 55 Hudson Yards

Billionaire to relocate from 330 and 510 Madison Avenue

55 Hudson Yards (Credit: Kohn Pedersen Fox) (inset: Steve Cohen)

55 Hudson Yards (Credit: Kohn Pedersen Fox) (inset: Steve Cohen)

Steven Cohen is so rich that he needs a 175,000-square-foot office to manage his personal wealth.  Naturally, when you’re that rich, you can easily afford the asking rents at Hudson Yards.

Point72 Asset Management, the company charged with managing the hedge funder’s $11 billion fortune, signed a 175,000-square-foot lease at the Related Companies and Mitsui Fudosan America’s 55 Hudson Yards. The 1,000-employee company will move there from its current spaces at 510 and 330 Madison Avenue in 2018. That’s also the year the 1.3 million-square-foot, KPF-designed office tower is expected to open.

Last year, Japanese investment firm Mitsui Fudosan bought a stake in 55 Hudson Yards for $258.8 million In April, law firm Milbank, Tweed, Hadley & McCloy signed a letter if intent to lease 250,000 square feet at the tower.  The largest private real estate development in the U.S., Hudson Yards will feature 17 million square feet of commercial and residential space.

Steven Cohen became a billionaire through the hedge fund he founded, SAC Capital. After traders at the firm were convicted of insider trading in 2013, SAC Capital agreed to pay a $1.8 billion fine and was barred from managing third-party funds.

Earlier this year, Cohen reached a personal settlement with the Securities and Exchange Commission that barred him from managing third-party money until 2018.