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/

Investment Firm Takes 145 East 57th Street Penthouse

145 EAST 57TH STREET. IMAGE: ABS PARTNERS

145 EAST 57TH STREET. IMAGE: ABS PARTNERS

A private equity firm has snagged the newly constructed penthouse at ABS Partners Real Estate’s 145 East 57th Street, also known as the Hammacher Schlemmer building, Commercial Observer has learned.

Speyside Equity has inked a five-year deal for the 2,650-square-foot suite on the top floor of the 12-story, 64,000-square-foot office building between Third and Lexington Avenues, according to information from the landlord. Asking rent for the in Midtown East space was $80 a square foot.

The Ann Arbor, Mich.-based firm, which invests in metal, chemical and food manufacturing companies, will move from subleased office space in the Paramount Building at 1501 Broadway between West 43rd and 44th Streets. Its new home will have floor-to-ceiling glass windows looking out on 57th Street, 14-foot ceilings and a large private terrace.

Speyside Founder Kevin Daugherty said in prepared remarks that the new office would allow the company to “expand our team as we raise our next fund in the coming months.” He added, “We are excited about the space and feel it will really create an attractive and energetic environment for our team.”

The firm raised $130 million in 2016 for its first institutional fund, according to industry reports.

ABS’ John BrodRobert Finkelstein and Alex Kaskel handled the transaction in-house. Speyside was represented by Town Commercial’s Nancy Shapiro. A spokeswoman for ABS didn’t immediately return a request for comment.

“It has pretty spectacular outdoor space for commercial,” Shapiro told CO. “It’s beautiful, it’s modern, it’s clean. It’s a very upscale space. They wanted something that would reflect more on the work they do, which is taking these struggling manufacturing businesses and putting them in a better state.”

ABS purchased the 64,000-square-foot, 1926 commercial property for $63 million in October 2016, according to property records. It renovated the building into boutique office space with six floors of prebuilt space, stainless steel appliances and a curated art display in the lobby.

BY REBECCA BAIRD-REMBA JANUARY 8, 2018 12:49 PM

https://commercialobserver.com/2018/01/investment-firm-takes-145-east-57th-street-penthouse/

LeFrak Leases 39K SF of Office Space to Nobu, Financial Firms at 40 West 57th Street

40 WEST 57TH STREET. PHOTO: CHRISTOPHER BRIDE FOR PROPERTYSHARK

40 WEST 57TH STREET. PHOTO: CHRISTOPHER BRIDE FOR PROPERTYSHARK

Private wealth management firm Tocqueville Asset Management and Nobu Restaurant Group recently finalized leases at LeFrak’s 40 West 57th Street, as part of a trio of new deals in the building totaling 39,335 square feet, according to landlord broker CBRE.

Tocqueville signed a 10-year agreement to renew its 25,000 square feet on the entire 19th floor of the 36-story office tower between Fifth Avenue and Avenue of the Americas. Asking rent for the space was “closer to $100 [per square foot] than it is to $200,” said CBRE’s Howard Fiddle, who represented LeFrak in the deal. The 29-year-old investment management company has been in the building for “at least 15 years,” according to Fiddle.

Nobu Restaurant Group, the multinational chain of Japanese-Peruvian fusion restaurants run by chef Nobu Matsuhisa and film star Robert De Niro, also decided to move its headquarters into the 1970s skyscraper. Last month the chain leased 8,800 square feet on part of the third floor for just under 10 years. It has operated Nobu 57, a two-level, 13,000-square-foot restaurant, in the bottom of the building since 2004, according to The New York Times. The 30-year-old hospitality group will move from 4,800 square feet at 3 East 57th Street, where it has subleased since 2011. 

Finally, Duquesne Fund Services, a firm that offers tech and back office services for hedge funds and family offices, recently inked a seven-year lease for 5,535 square feet on part of the third floor. The company is an affiliate of Duquesne Family Office, the investment management firm founded in 2010 by billionaire hedge fund manager Stanley Druckenmiller. While Duquesne Fund Services is a new business, Duquesne Family Office (and its predecessor, Duquesne Capital Management) has occupied 35,739 square feet on the building’s 24th and 25th floors via a 10-year lease since 2008.

Fiddle and CBRE’s Evan Fiddle (Howard’s son), Benjamin Joseph, Gregg Rothkin and Arkady Smolyansky, along with LeFrak’s Mary Lou Berk, represented the landlord in all three transactions. On the tenant side, Newmark Knight Frank’s Daniel Madison and James Saunders represented Tocqueville in its office renewal. (A spokesman for NKF didn’t return a request for comment.) And John Nugent and Craig Reicher, also of CBRE, handled the deal for Duquesne Fund Services. Nobu didn’t have a broker in the deal.

BY REBECCA BAIRD-REMBA DECEMBER 19, 2017 2:39 PM

https://commercialobserver.com/2017/12/lefrak-leases-39k-sf-of-office-space-to-nobu-financial-firms-at-40-west-57th-street/

Investment Banking Firm Heads to SL Green’s 521 Fifth Avenue

Investment brokerage Laidlaw & Company is moving one block within Midtown.

The 170-year-old investment banking and securities firm inked a 10-year deal for 20,987 square feet on the entire 12th floor at 521 Fifth Avenue, between East 43rd and 44th Streets. Asking rent for the space wasn’t immediately available.

Laidlaw will relocate from 546 Fifth Avenue, which is only a block and a half away between West 45th and 46th Streets, in the second quarter of 2018.

“Fifth Avenue continues to be a premier business address and buildings like 521 Fifth Avenue, which are centrally-located, convenient to mass transit and have the benefit of institutional ownership will continue to outperform the market,” said SL Green Executive Vice President Steven Durels in prepared remarks.

Jonathan Plotkin and Tim Pond of Colliers International handled the deal for Laidlaw & Company. SL Green was represented by Cushman & Wakefield’s Tara StacomBarry ZellerJustin Royce and Pierce Hance. Spokespeople for both brokerages didn’t immediately respond to requests for comment.

Other tenants in the 39-story office building include ChinaTrust Commercial BankMcGraw Communications and Financial Guaranty Insurance Company. The property’s ground floor retail is occupied mostly by Equinox and Urban Outfitters.

Investment Manager Inks 11K-SF Sublease in Midtown

505 FIFTH AVENUE. PHOTO: COSTAR GROUP

505 FIFTH AVENUE. PHOTO: COSTAR GROUP

Kinderhook Industries, a private investment firm that manages more than $2 billion, has signed a 10,786-square-foot sublease at 505 Fifth Avenue to relocate its offices, Commercial Observer has learned.

The financial company inked the deal with American Capital Strategies, which was acquired by Ares Capital Corporation earlier this year, to occupy the entire 25th floor of the 26-story, 298,000-square-foot building, which is located on the corner of East 42nd Street and Fifth Avenue. (The building is owned by Axel Stawski’s Stawski Partners.)

The asking rent in the nine-year deal was $80s per square foot, a source with intimate knowledge of the transaction told CO.  

Major factors for the move included the building’s proximity to Grand Central Terminal and because it has column-free space with floor to ceiling glass and high ceilings, according to the source.

Kinderhook is relocating in the first quarter of 2018 from 521 Fifth Avenue between East 43rd and East 44th Streets a block north, where it presently occupies 6,580 square feet.

Alexander Chudnoff and Abe Cooper of JLL handed the deal for Kinderhook Industries, while Savills Studley’s Christopher Foerch and Gary Kerperrepresented American Capital.

Chudnoff declined to comment on the deal, and the Savills Studley brokers did not immediately return a request for comment via a spokeswoman.

https://commercialobserver.com/2017/11/investment-manager-inks-11k-sf-sublease-in-midtown/

CRE lender takes 20K sf at Hell’s Kitchen office conversion

787 11th Avenue

787 11th Avenue

Real estate lender Dwight Capital inked a 20,000-square-foot lease at Georgetown Company’s office development 787 11th Avenue.

Georgetown landed a $349.5 million construction loan from the Blackstone Group last October to fund the conversion of the former Ford Motor Company industrial building.

Savills Studley represented Dwight while CBRE represented the landlord.

Led by Adam and Josh Sasouness, Dwight claims it was the second-largest multifamily HUD lender in FY 2016 in terms of both transactions and dollar amount, with $902 million in commitments.

Last year, Bill Ackman’s Pershing Square Capital Management inked a 67,000-square-foot lease at the Hell’s Kitchen building, which will reportedly feature a rooftop tennis court and an office penthouse. [NYP] — Konrad Putzier

https://therealdeal.com/2017/11/15/cre-lender-takes-20k-sf-at-hells-kitchen-office-conversion/

Research Firm Takes Full Floor at RXR’s 1330 Avenue of the Americas

1330 AVENUE OF THE AMERICAS. PHOTO: COSTAR GROUP

1330 AVENUE OF THE AMERICAS. PHOTO: COSTAR GROUP

Economic research firm Cornerstone Macro is relocating its offices within Midtown after agreeing to take 16,300 square feet at RXR Realty’s 1330 Avenue of the Americas, Commercial Observer has learned.

The company agreed late last week to a 10-year lease for the entire fifth floor at the 40-story, roughly 526,000-square-foot office building between West 53rd and West 54th Streets, according to sources with knowledge of the transaction. Cornerstone Macro is expected to move from its current location at nearby 650 Fifth Avenue, where it occupies nearly 11,000 square feet, in the summer of 2018.

Asking rent in the deal was in the high $70s per square foot, sources said. The tenant was represented in the transaction by Garett Varricchio and Jessica Tenenbaum of MHP Real Estate Services, while RXR’s Alexandra Budd represented the landlord in-house alongside Cushman & Wakefield’s Peter Trivelas.

“Cornerstone Macro wanted to align themselves with an excellent and reputable landlord, and they were able to achieve that through this transaction with RXR,” Varricchio told CO.

The same cannot be said for the reputation of Cornerstone Macro’s current landlord at 650 Fifth Avenue, the Alavi Foundation, which is notorious for its connections with the Iranian government. In June, a federal district court jury ruled that the U.S. government could seize the 36-story office tower after it was determined that the nonprofit foundation, which owns a 60 percent stake in the property, violated U.S. sanctions against Iran via its partnership with Assa Corp. Assa functioned as a front for an Iranian state-controlled bank that owned the remaining 40 percent of 650 Fifth Avenue, until a federal judge ruled in 2013 that the government could seize Assa’s share.

But Varricchio said that Cornerstone Macro’s move to 1330 Avenue of the Americas was more motivated by the tenant’s desire to stay in Midtown—as well as the “boutique nature of the building,” given its relatively smaller floor plates compared to most of the surrounding Class A office stock.

Law firm CKR Law recently doubled its footprint at 1330 Avenue of the Americasafter inking a lease for the entire 16,300-square-foot 12th floor, as CO first reported last week. That deal took CKR Law’s total square footage at the property to nearly 33,000 square feet.

An RXR spokeswoman confirmed the deal but declined further comment. Representatives for Cushman & Wakefield did not immediately provide comment.

https://commercialobserver.com/2017/11/research-firm-cornerstone-macro-nyc-office-rxr-realty-1330-avenue-of-the-americas/

BY REY MASHAYEKHI NOVEMBER 9, 2017 12:40 PM

Lender Varagon Capital Inks 28K-SF Deal to Relocate Within Midtown

299 PARK AVENUE. PHOTO: BRETT BEYER

299 PARK AVENUE. PHOTO: BRETT BEYER

Varagon Capital Partners, an asset manager that focuses on lending to middle-market companies, has signed a 28,316-square-foot deal at Fisher Brother’s 299 Park Avenue to relocate its offices, Commercial Observer has learned.

The lender will occupy the entire third floor of the 42-story, 1.2-million-square-foot building between East 48th and East 49th Streets.

The asking rent in the deal was in the high $80s per square foot, according to a source with knowledge of the transaction. The length of the deal was not immediately clear. 

Varagon was formed in 2014 with backing from American International Group and affiliates of Oak Hill Capital Management. It is moving from the 22nd floor of 488 Madison Avenue between East 51st and East 52nd Streets by the end of this year. There the company has 10,360 square feet, according to CoStar Group.

CBRE’s Leo Paytas and Conor Denihan handled the deal for Varagon. Fisher Brothers was represented in-house by Marc Packman and Clark Briffel, and a Newmark Knight Frank team led of David FalkPeter ShimkinAndrew SachsEric Cagner and Andrew Peretz. Representatives for CBRE and NKF did not immediately return requests for comment and information.

Fisher Brothers expects to begin a David Rockwell-designed renovation of 299 Park Avenue early next year, which will include a new lobby, revitalized entrance that will allow more light from outside and an illuminated plaza. The work will cost approximately $20 million.

“Our capital improvement program at 299 Park Avenue is going much deeper than a standard refresh and completely transforming the aesthetic of the building with a sleek design and modern feel,” Winston Fisher, a partner at Fisher Brothers, said in a prepared statement. “We are pleased to welcome Varagon to the growing roster of blue-chip tenants [at] 299 Park Avenue.”

Existing tenants in the 1967 building include Capital One and UBS.

https://commercialobserver.com/2017/11/lender-varagon-capital-inks-28k-sf-deal-to-relocate-within-midtown/

Wealth Management Firm for Blackstone Co-Founder Moves Within Midtown

399 PARK AVENUE. PHOTO: COSTAR GROUP

399 PARK AVENUE. PHOTO: COSTAR GROUP

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.

BY REBECCA BAIRD-REMBA NOVEMBER 6, 2017 11:31 AM

https://commercialobserver.com/2017/11/wealth-management-firm-for-blackstone-co-founder-moves-within-midtown/

The Beekman Group Grows With Move to Nearly 8K SF at 530 Fifth Avenue

530 FIFTH AVENUE. PHOTO: RXR REALTY

530 FIFTH AVENUE. PHOTO: RXR REALTY

The Beekman Group, a private equity firm based in New York City, is moving from just under 5,000 square feet at 489 Fifth Avenue to 7,803 square feet in the nearby 530 Fifth Avenue between West 44th and West 45th Streets, Commercial Observer has learned.

Cushman & Wakefield’s Douglas Dolgoff told CO that The Beekman Group, founded in 2004, outgrew its space and rather than take two floors at 489 Fifth Avenue, it opted for a full tower floor (23) at the 26-story, 536,135-square-foot 530 Fifth Avenue. The building’s office portion is owned by RXR Realty and a partnership of Thor Equities and General Growth Properties owns the retail space.

“The main driver was trying to keep the location as close to the old location,” Dolgoff said. “We had a tight set of parameters for where they wanted to end up.”

Beekman liked that RXR agreed to deliver a turnkey installation so “they didn’t have to come out of pocket for construction costs,” Dolgoff said. The value of that construction, he estimated, is about $130 or $140 per square foot.

The lease is for eight years with an asking rent of $85 per square foot, an RXR spokeswoman indicated. Beekman will move in upon completion of the construction, she added.

Avison Young’s John RyanAnthony LoPresti and Michael Leff represented the landlord along with Dan Birney and Alexandra Budd of RXR. An Avison Young spokesman didn’t respond with a comment.

Tenants include movie and television show producer Lionsgate in 34,300 square feet, as CO previously reported, and financial firm Ameriprise Financial in about 21,000 square feet.

Winklevoss Twins’ Digital Currency Exchange Company Relocating Within Midtown South

315 PARK AVENUE SOUTH. PHOTO: COLUMBIA PROPERTY TRUST

315 PARK AVENUE SOUTH. PHOTO: COLUMBIA PROPERTY TRUST

Gemini Trust Company, a digital currency exchange founded by Cameron and Tyler Winklevoss three years ago, has signed a 34,000-square-foot deal to relocate its offices to 315 Park Avenue South, Commercial Observer has learned.

The company will occupy two entire floors of the 20-story building between East 23rd and East 24th Streets, according to a source with intimate knowledge of the transaction who declined to disclose which floors. Gemini is a platform for investors to buy, sell and store digital assets, such as Bitcoin and Ether. Its founders are best known for suing Facebook Chief Executive Officer Mark Zuckerberg over the the social media platform’s genesis.

The asking rent in the more than 11-year deal was in the low $90s per square foot, the source told CO. Gemini is moving from 30 West 24th Street between Fifth Avenue and Avenue of the Americas in spring 2018.

Columbia Property Trust, the owner of 315 Park Avenue South, has spent approximately $10 million to renovate the building with the addition of a new lobby and new elevator cabs. The landlord pointed to this transformation as the reason why Gemini signed a lease there.

“When we acquired 315 Park Avenue South in 2015, we recognized its potential to attract the city’s top creative, media and technology companies and made significant investments to transform the building into a premier Midtown South destination,” Nelson Mills, the president and chief executive officer of Columbia, said in a prepared statement.

Ross Zimbalist and Michael Blum of CBRE represented Gemini, while David Berkey and Andrew Wiener of L&L Holding Company, the exclusive leasing and managing arm of the building, handled the deal for Columbia.

A spokeswoman for CBRE said the brokers declined to comment, and a representative for Gemini did not immediately return requests for comment.

https://commercialobserver.com/2017/10/winklevoss-twins-digital-currency-exchange-company-relocating-within-midtown-south/

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/

Large UAE Bank Moving NYC Office Within FiDi

7 STATE STREET. PHOTO: COSTAR GROUP.

7 STATE STREET. PHOTO: COSTAR GROUP.

Dubai-based financial institution Mashreqbank signed a 10-year lease for 8,727 square feet at 17 State Street, according to landlord RFR Realty.

The tenant will take half of the 22nd floor in the 42-story building at the intersection of State and Pearl Streets across from The Battery. The asking rent in the deal was $68 per square foot. The bank is moving from its current address at 50 Broadway near Exchange Place. It has 5,919 square feet there on the 15th floor, according to CoStar Group.

RFR’s AJ Camhi and Ryan Silverman handled the deal alongside a JLL team of John Wheeler and Clayton KlineCushman & Wakefield’s Dan Organ brokered the transaction for Mashreqbank, which has 12 offices overseas in Europe, Asia and Africa. A spokesman for C&W declined to respond to a request for comment.

The deal was part of a few new transactions signed at the 570,696-square-foot office tower.

London-based M Three Consulting signed a 4,812-square-foot deal at the building, and it is moving from 14 Wall Street between Broadway and Nassau Street. Also, law firm Torgan, Cooper & Aaron inked a 6,443-square-foot renewal. Rob Lowe and Evan Algier of C&W handled the deal for the law firm. And financial planner Granger Management Holdings renewed its 3,263-square-foot space.

“We continue to attract and retain prestigious global companies who have chosen 17 State Street as their home,” Camhi said in a prepared statement. “Each of the executives and employees at these firms will benefit from its close proximity to transportation… as well as the stunning views of New York Harbor, the Statue of Liberty and [The Battery].”

https://commercialobserver.com/2017/09/large-uae-bank-moving-nyc-office-within-fidi/

BY LIAM LA GUERRE SEPTEMBER 28, 2017 10:11 AM

Three Financial Services Firms Ink New Office Leases at 600 Lex

SL Green Realty Corp. has signed three new financial services tenants at its 600 Lexington Avenue office tower in Midtown East, the real estate investment trust announced today.

In the largest deal, investment banking advisory firm GLC Advisors & Co. took 12,487 square feet comprising the entire ninth floor of the 36-story, 305,000-square-foot property on the northwest corner of East 52nd Street. GLC signed the seven-year lease, which will commence in December, late last month and will move to 600 Lexington Avenue from its current location at Cohen Brothers Realty Corp.’s 805 Third Avenue.

Private equity firm NexPhase Capital, meanwhile, inked a five-year lease for the entire, 8,607-square-foot 12th floor at the building. The deal, which was signed this week, is anticipated to commence at the beginning of November and will see NexPhase relocate from Boston Properties’ 399 Park Avenue.

Finally, alternative investment manager KCL Capital signed a five-year deal to take the entire 6,780-square-foot 28th floor at 600 Lexington Avenue. The transaction was sealed late last month, with KCL’s lease expected to commence in the middle of October. The company’s current location was not disclosed.

Asking rent in the transactions ranged from the low $70s to mid-$80s per square foot, according to sources with knowledge of the deals. A JLL team of Paul GlickmanDiana BiasottiJonathan Fanuzzi and Ben Bass represented SL Green in the transactions. Daniel Posy and Jason Roberts of Savills Studley handled the GLC and KCL leases for the tenants, while Newmark Knight Frank’s Brian Goldman and Eric Cagner worked on behalf of NexPhase.

The deals take 600 Lexington Avenue to “nearly 99 percent occupancy,” Steven Durels, SL Green executive vice president and director of leasing and real property, said in a statement. Durels added that the building’s “efficient, small floors with floor-to-ceiling windows and white glove service” have proven “highly appealing to upscale tenants.”

Tenants at the property include hedge funds MKP Capital ManagementElement Capital and LibreMax Capital.

BY REY MASHAYEKHI SEPTEMBER 15, 2017 8:00 PM

https://commercialobserver.com/2017/09/three-financial-services-firms-ink-new-office-leases-at-600-lex/

Stagwell Group inks 13-year lease at 1 WTC

The Stagwell Group’s President and Managing Partner Mark Penn and One World Trade Center

The Stagwell Group’s President and Managing Partner Mark Penn and One World Trade Center

The Stagwell Group is taking more than 83,000 square feet at 1 World Trade Center.

The investment firm inked a 13-year lease for the 62nd and 63rd floors of the tower, Crain’s reported. Stagwell, which was founded by former Microsoft executive Mark Penn, plans to move four of its subsidiaries — SKDKnickerbocker, PMX Agency, Code and Theory and Harris Insights — into the space. The company will have additional space to move more of its companies in the future.

Asking rent on the building’s 64th through 75th floors is $69 per square foot. The Durst Organization’s Eric Engelhardt and Cushman & Wakefield’s Tara Stacom represented Durst in the deal. Stagwell was represented by JLL’s Howard HerschMichael Berg and Doug Kauffman.

The 104-story tower still has 750,000 square feet of vacant space, mostly on the upper floors. Asking rents for above the 75th floor ranges from $80 to $100 per square foot. [Crain’s] — Kathryn Brenzel

https://therealdeal.com/2017/07/11/stagwell-group-inks-13-year-lease-at-1-wtc/

Investment adviser Cyrus Capital takes 23K sf at Park Avenue Tower

Rendering of 65 East 55th Street and Stephen Freidheim

Rendering of 65 East 55th Street and Stephen Freidheim

Blackstone Group subsidiary Equity Office inked a deal for investment adviser Cyrus Capital Partners to take just over 23,000 square feet of office space at 65 East 55th Street.

The company plans to take about 15,000 square feet on the 34th floor and 8,300 square feet on the the 35th floor, the Commercial Observer reported. Equity Office would build out the space for the new tenant, according to the publication, which includes a new internal staircases to connect the two floors.

The asking rent in the 15-year deal was $150 per square foot. Cyrus is now headquartered at 399 Park Avenue.

Known as Park Avenue Tower, Blackstone paid $750 million for the 36-story building in 2014.
It was the second time Blackstone  had owned it, having previously sold it to Harry Macklowe as part of a six-building portfolio sale. The company has since spent $25 million renovating it.

Literary and talent agency ICM Partners is taking 35,000 square feet across two floors at the building, and other tenants include King Street Capital and Eminence Capital.

CBRE’s Ben Friedland and Silvio Petriello represented Cyrus Capital in the deal. Equity Office was represented in-house and by Newmark Grubb Knight Frank[CO] — Miriam Hall

https://therealdeal.com/2017/04/24/investment-adviser-cyrus-capital-takes-23k-sf-at-park-avenue-tower/

William Kaufman Renews Financial Tenants at 777 Third Avenue

777 THIRD AVENUE. PHOTO: COSTAR GROUP

777 THIRD AVENUE. PHOTO: COSTAR GROUP

The William Kaufman Organization has secured two office renewals with financial services tenants at its 777 Third Avenue office tower in Midtown East, Commercial Observer has learned—a 7,383-square-foot renewal and expansion with Innovatus Capital Partners and a 3,056-square-foot renewal with Grisanti Capital Management.

Investment advisor Innovatus signed a four-year deal to renew its roughly 3,200-square-foot space on the 25th floor of the 38-story, 576,000-square foot building while also expanding its presence by 4,200 square feet. Investment manager Grisanti agreed to a one-year renewal of its existing space on the 21st floor of the property located between East 48th and East 49th Streets.

Asking rent for both deals was $71 per square foot, according to sources with knowledge of the transactions. Michael Lenchner of Sage Realty Corporation, William Kaufman’s leasing and management division, represented the landlord in-house on both deals. Innovatus was represented by Brian Goldman and Brandon David of Newmark Grubb Knight Frank, while Mark Lauzon of Cushman & Wakefield represented Grisanti.

 

Though William Kaufman said in a press release announcing the deals that 777 Third Avenue is currently 97 percent leased, cosmetics company Avon, the property’s anchor tenant, put its 222,000 square feet of space at the building on the sublease market last year, according to CoStar Group. Avon, which leases the second through 10th floors at 777 Third Avenue, subsequently signed a deal for 91,000 square feet at Brookfield Property Partners’ One Liberty Plaza in the Financial District earlier this year.

William Kaufman Organization did not immediately respond to questions on the status of Avon’s space at 777 Third Avenue.

The Grisanti lease is the firm’s second renewal at the property, the tenant’s owner and founder Christopher Grisanti said in a statement. “Because the Sage personnel were both fair and competent, negotiations went quickly. We were able to agree on terms in an afternoon, and then get back to managing money for our clients.”

Representatives for NGKF confirmed the Innovatus deal but did not provide comment. A spokesman for C&W did not immediately return a request for comment.

https://commercialobserver.com/2017/04/william-kaufman-renews-financial-tenants-at-777-third-avenue/

Daniel Loeb’s $15B hedge fund Third Point heading to Hudson Yards: sources

Daniel Loeb and a rendering of 55 Hudson Yards

Daniel Loeb and a rendering of 55 Hudson Yards

Daniel Loeb’s Third Point Management has a deal in place to move to Related Companies’ 55 Hudson Yards, The Real Deal has learned.

Third Point has a lease out for the top two or three floors of the 1.3 million-square-foot 55 Hudson Yards, covering 60,000 or 90,000 square feet, sources told TRD. Asking rent for the space is $140 per square foot, but a source familiar with the Third Point deal said it is getting done in the $130 per square foot range.

If the deal goes through, the $15 billion hedge fund would be just the latest in a flurry of blue-chip financial tenants headed to the Far West Side megaproject from Midtown.

The investment firm Silver Lake reportedly has a deal to lease 50,000 square feet at 55 Hudson Yards. And next door at 50 Hudson Yards, asset manager BlackRock last year signed a letter of intent to take 850,000 square feet, while Morgan Stanley is reportedly considering buying an office condo that would take up most of the remaining space at that upcoming tower.

Third Point and the company’s broker, JLL’s  Alexander Chudnoff, did not immediately respond to requests for comment. A spokesperson for Related, which is co-developing the tower with majority investor Mitsui Fudosan America, declined to comment.

Third Point, which is now located at RFR Realty’s 390 Park Avenue, is reportedly raising a fund with minimum investments of $10 million for the first time since it raised $2.5 billion in 2015. And it’s doing so at a time when the hedge fund industry is in a state of flux as managers struggle to produce the kinds of returns investors are expecting.

In 2016, 1,057 hedge funds were either closed or liquidated, compared to just 729 that opened during the year, according to data from Hedge Fund Research Inc. cited by the New York Times.

Hedge fund titan Richard Perry last year announced he was shutting down his flagship Perry Capital fund after 28 years. The company negotiated a buyout with Boston Properties at the General Motors Building on its 40,000-square-foot lease, which had about three or four years remaining on it. Sources said Perry had to pay a hefty sum to terminate the remaining term.

 

Stephen Winter

Stephen Winter

And last week, Goldman Sachs alum Eric Mindich told investors he was shutting down his $7 billion Eton Park Capital Management fund. The company occupies about 61,000 square feet at Boston Properties’ 399 Park Avenue on a lease that is expiring soon.

At 55 Hudson, Loeb will join fellow billionaire investor Steven A. Cohen’s Point72 Asset Management as well as the law firms Boies, Schiller & Flexner and Milbank, Tweed, Hadley & McCloy, which have already inked deals at the under-construction tower.

Drug maker Intercept Pharmaceuticals last year finalized a deal to lease 85,000 square feet at 55 Hudson. The transaction also included 49,000 square feet at 10 Hudson Yards, which Intercept can occupy until the new building is completed, which is scheduled for next year.

CBRE’s Bob Alexander and Howard Fiddle are handling leasing at Hudson Yards, along with Related’s Stephen Winter.

 

http://bit.ly/2or63z2

Silver Lake in talks to move to 55 Hudson Yards

Silver Lake co-founder Jim Davidson and 55 Hudson Yards

Silver Lake co-founder Jim Davidson and 55 Hudson Yards

The private equity firm would leave its office at Solow's 9 W. 57th St.

Silver Lake, an investment firm that has backed the likes of Alibaba and Dell, is in talks to move its New York offices to 55 Hudson Yards, according to Bloomberg. The company is said to be looking for around 50,000 square feet at the upcoming office tower. 

The move would make Silver Lake the second marquee tenant to leave the Solow Building at 9 West 57th Street for a new home at Hudson Yards, after private equity firm KKR bought a 343,000-square-foot office condo at 30 Hudson Yards in 2015.The news was first reported by the business and politics website Axios.

Other tenants signed up at the 1.3 million-square-foot 55 Hudson include Steve Cohen’s Point72 Asset and law firm Milbank Tweed Hadley & McCloy. The tower is being developed by Mitsui Fudosan, which owns a majority stake, along with Related Companies and Oxford Properties.

Another potential tenant is the law firm Cooley, which is spearheading Snap’s upcoming IPO and potentially eyeing up to three floors at the tower, as The Real Deal reported.  [Bloomberg] — Will Parker

https://therealdeal.com/2017/02/28/silver-lake-in-talks-to-move-to-55-hudson-yards/

Hedge Fund Citadel Subleases 24K sf at 520 Madison Avenue

520 MADISON AVENUE. PHOTO: TISHMAN SPEYER

520 MADISON AVENUE. PHOTO: TISHMAN SPEYER

Citadel—the hedge fund that made waves last year after signing a high-priced lease at L&L Holding Company’s brand new 425 Park Avenue—has agreed to sublease 24,000 square feet at 520 Madison Avenue in Midtown from financial services firm Jefferies, according to The Real Deal.

The Chicago-based, Ken Griffin-led firm has sought to expand its Manhattan office footprint while L&L completes work on the Norman Foster-designed 425 Park Avenue, located between East 55th and East 56th Streets and slated for completion next year. Citadel signed an 11-year, 200,000-square-foot lease at the planned 47-story, 670,000-square-foot tower last February for a reported $175 per square foot—including a city-record $300 per square foot for the building’s penthouse office space, as Commercial Observer reported last year.

But the hedge fund has been searching for additional space in the short term until it is able to move into 425 Park Avenue, according to TRD, and was drawn to Jefferies’ space at 520 Madison Avenue as it is already equipped to accommodate a financial services tenant. Jefferies’ asking rent was in the high-$80s per square foot, TRD reported.

A CBRE team led by John Nugent and Andrew Sussman represented Citadel in the Jefferies deal. CBRE also represented the hedge fund in its lease at 425 Park Avenue. In addition, Citadel has hired a JLL team to look for up to 100,000 square feet of office space near its current headquarters at 601 Lexington Avenue, between East 53rd and East 54th Streets in Midtown East, TRD reported.

Jefferies signed a 458,000-square-foot renewal and expansion at 520 Madison Avenue in 2013 that is set to run through 2029. Tishman Speyer owns the 43-story, 1-million-square-foot property, where other tenants include the Carlyle Group and Davidson Kempner Capital Management.

https://commercialobserver.com/2017/02/hedge-fund-citadel-subleases-24k-sf-at-520-madison-avenue/