Deutsche Bank will move from Wall Street to Columbus Circle

DB.PNG

Welcome to what may become the future Deutsche Bank Center.

The German bank has decided to move its regional headquarters from Lower Manhattan to 1.2 million square feet at One Columbus Circle, The Post has learned.

“After a full evaluation of our real estate strategy, Deutsche Bank has decided to relocate its regional headquarters in New York from its current location at 60 Wall Street to a new location at One Columbus Circle,” a spokesman for the bank said in a statement.

A term sheet has been signed, sources said — not a lease, which could be the reason Deutsche Bank declined to provide other details like whether it would get naming rights to the Time Warner Center.

This reporter broke news of the move on Twitter.

Time Warner is planning to move from its namesake building to the new 30 Hudson Yards in 2021.

Related Cos. had developed Time Warner Center and sold the media company its office space — but bought it back when Time Warner agreed to move to Related’s new project at Hudson Yards.

The asking rent at the Time Warner Center was $135 per square foot.

“Related transformed Columbus Circle into a thriving mixed-use neighborhood and world-class destination. We are very pleased to work with our long-term partner as they re-imagine their north American headquarters,” said Jeff T. Blau, chief executive of Related Cos.

The first term of Deutsche’s lease at 60 Wall St. ends in June 2022. The bank had several renewal options and the building had new owners that laid out the red carpet for a lease renewal.

But the bank “wanted a fresh start,” one source said.

It loves the thriving Upper West Side neighborhood around the Time Warner Center — with its European feel as well as the stunning Central Park, river and city views, sources said.

The One Columbus economics will also work, sources said. Deutsche Bank will relocate roughly 500,000 square feet of occupancy to a new building in Jacksonville, Fla., where it already has a large presence.

Peter Riguardi, chairman and president of the JLL’s tri-state region, who represented Deutsche Bank, declined to comment. He had been pitching the Time Warner Center on behalf of Related Cos. but recused himself on this transaction.

“This is a decision they made because of their business and financial health,” said a disappointed Jessica Lappin, president of the Alliance for Downtown, who said she believed the bank’s employees wanted to remain in the area. “They are retrenching and reorganizing, and (that’s) why I can see being the anchor tenant at 2 World Trade was a bridge too far for them.”

The 2 World Trade Center tower would have been developed by Larry Silverstein, but it has taken several years to flesh out details, build and turn over for a move in.

“While today’s news is disappointing, we are very happy with Downtown’s growing momentum and optimistic about the World Trade Center’s continued success,” said a Silverstein spokesman. The area will welcome 4,000 GroupM and 2,000 Spotify employees to 3 WTC and 4 WTC, respectively, over the rest of the year.

Originally developed in 1987 for what was then called JPMorgan & Co., 60 Wall Street would have been the least expensive choice, sources said. But the 1.6 million-square-foot building would have required an entire redevelopment of its trading floors and now 30-year-old infrastructure.

https://nypost.com/2018/05/04/deutsche-bank-will-move-from-wall-street-to-columbus-circle/

By Lois Weiss

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 Grows NYC Presence With Additional Offices at 220 Fifth Avenue

220 FIFTH AVENUE. PHOTO: STELLAR MANAGEMENT

220 FIFTH AVENUE. PHOTO: STELLAR MANAGEMENT

Investment management firm Artisan Partners is expanding its New York City office footprint after agreeing to take 9,000 square feet at Stellar Management and Imperium Capital’s 220 Fifth Avenue in NoMad, Commercial Observer has learned.

Artisan signed a 10-year lease today for the entire fifth floor at the 20-story, 167,000-square-foot building at the northwest corner of Fifth Avenue and West 26th Street, according to sources with knowledge of the transaction. The Milwaukee-based firm is expected to begin occupying the space this coming spring while keeping its existing New York City offices at RXR Realty’s 1330 Avenue of the Americas, sources said.

Asking rent in the deal was not immediately clear. A Newmark Knight Frank team of Brian WatermanAndrew PeretzDavid Malawer and Brent Ozarowski represented the landlord, while Eric Deutsch of CBRE represented the tenant.

Matthew Lembo, a principal and chief investment officer at Stellar, said in a statement that the transaction “is a testament to the leasing activity we’ve experienced” in the Midtown South market—including a recent 7,300-square-foot deal with Australian yoga studio Humming Puppy at 119 West 23rd Street, as CO first reported last week.

The Larry Gluck-led real estate investment firm teamed with Imperium to acquire a leasehold interest on 220 Fifth Avenue from Dino & Sons Realty Corp. earlier this year, making it Stellar’s seventh Midtown South commercial asset. The 105-year-old building, which features a neo-Gothic facade overlooking Madison Square Park, is currently undergoing a capital improvement program that includes a full renovation of the lobby and upgrades to the building systems.

Stellar and Imperium are also prebuilding out entire floors at the property as they become vacant, in an attempt to cater to the growing demand from office users seeking turnkey space. Current tenants at 220 Fifth Avenue include architecture firm Deborah Berke Partners, trade publication Mass Market Retailers and law firm Weiner, Millo, Morgan & Bonnano.

Representatives for NKF and CBRE did not immediately provide comment.

Artisan Partners has more than $115 billion in assets under management, according to its website. In addition to its presence in New York and its Milwaukee headquarters, the firm has U.S. offices in Chicago, San Francisco, Atlanta and Kansas City, as well as international offices in London and Sydney.

https://commercialobserver.com/2017/12/investment-firm-grows-nyc-presence-with-additional-offices-at-220-fifth-avenue/

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

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/

Investopedia Leaving Grand Central Area for New Digs Near Bryant Park

114 WEST 41ST STREET.

114 WEST 41ST STREET.

Financial news and information website Investopedia has signed a 15,931-square-foot lease at 114 West 41st Street for its headquarters, Commercial Observer has learned.

The company will take the entire prebuilt eighth floor of the 22-story office building between Broadway and Avenue of the Americas, which is owned by Blackstone Group affiliate Equity Office.

Founded in 1999, Investopedia is a brand of media company IAC. It will relocate from its current offices at 110 East 42nd Street between Park and Lexington Avenues in the third quarter of the year, according to information provided to CO by the landlord.  

“Investopedia has experienced incredible growth over the last two years and we were reaching capacity in our current office,” David Siegel, chief executive officer of Investopedia, said in a statement. “We needed a new space that would not only accommodate us in the short-term, but enable us to continue our rapid expansion while offering a collaborative workplace environment.”

Investopedia’s’ new digs feature an open layout, 12 and a half foot-high ceilings, polished concrete floors, exposed brick, open pantry and fridge for a keg. The asking rent in the deal was in the mid-$70s per square foot, a source told CO. Steven Rotter and Daniel Santagata of JLL, who represented Investopedia in the transaction, did not respond to a request for comment via a spokesman.

“We are pleased to welcome Investopedia, which was drawn to 114 West 41st Street for its contemporary environment in an ideal location near Midtown’s best retail, restaurants and outdoor spaces,” Equity Office’s Scott Silverstein, who represented the landlord in-house with colleague Zachary Freeman, said in prepared remarks.

Newmark Grubb Knight Frank’s Erik HarrisScott KlauBen Shapiro and Zach Weil also worked on the deal for the landlord. The brokers did not return a request for comment via a spokesman.

 

https://commercialobserver.com/2017/04/investopedia-leaving-grand-central-area-for-new-digs-near-bryant-park/

Commodities firm inks 60K sf lease at Vornado’s 330 Madison Avenue

A Connecticut-based commodities producer and trader is taking 60,000 square feet at Vornado Realty Trust’s 330 Madison Avenue.

Glencore inked a lease for the entire seventh floor and a portion of the sixth floor in the Midtown office tower, Crain’s reported. The asking rent was in the low $70s per square foot. Glencore currently has space at RFR Realty’s 3 Stamford Plaza in Connecticut.

In 2014, a handful of financial firms signed leases in the 39-story office tower, including Abbott Downing, Tiger Legatus Management and Chimney Rock. Point72 Asset Management, the company charged with managing the Steve Cohen’s $11 billion fortune, also has offices at 330 Madison Avenue. The company, however, plans to move to 55 Hudson Yards in 2018. [Crain’s] — Kathryn Brenzel

https://therealdeal.com/2017/04/04/commodities-firm-inks-60k-sf-lease-at-vornados-330-madison-avenue/

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

https://therealdeal.com/2017/02/17/financial-firm-takes-125k-sf-at-brookfield-place/

U.S. Arm of Japanese Finance Firm Takes Full Floor at 280 Park Avenue

280 Park Avenue. Photo: CoStar Group

280 Park Avenue. Photo: CoStar Group

Orix USA Corporation, the stateside subsidiary of Japan-based ORIX Corporation, has finalized a deal to relocate to 280 Park Avenue in Midtown, Commercial Observer has learned.

The financial firm will occupy 20,123 square feet on the entire 40th floor of the tower between East 48th and East 49th Streets, a source familiar with the transaction told CO. Orix USA will expand as part of the move, as it currently leases 14,078 square feet at 485 Lexington Avenue between East 46th and East 47th Streets, according to CoStar Group.

Orix USA’s lease at the 43-story 280 Park Avenue is for 10 years, the source indicated. Asking rent in the deal was $115 per square foot.  

This is the second big lease signed at the SL Green Realty Corp.– and Vornado Realty Trust-owned property in recent weeks. As CO reported late last month, Wells Fargo signed a deal to renew early and expand to 49,000 square feet at the 1.3-million-square-foot building. In December 2016, Antares Capital signed a 55,000-square-foot lease to move into 280 Park Avenue from across the street.

Martin Horner of JLL represented Orix USA, while Peter Turchin of CBRE represented the landlords. Horner did not immediately return a request for comment via a spokesman, and a CBRE spokeswoman did not immediately respond to an inquiry.

https://commercialobserver.com/2017/02/u-s-arm-of-japanese-finance-firm-takes-full-floor-at-280-park-avenue/

Vornado Signs Private Equity Manager to Additional 28K SF at 888 Seventh Avenue

888 Seventh Avenue. Photo: CoStar

888 Seventh Avenue. Photo: CoStar

Lone Star Funds, a private equity firm, is expanding its foothold at Vornado Realty Trust’s 888 Seventh Avenue, according to Crain’s New York Business.

Now the firm, which has arranged $70 billion in funds since its inception 22 years ago, will occupy roughly 50,000 square feet at the 841,000-square-foot tower between West 56th and West 57th Streets.

Currently, the company leases about 22,000 square feet, making the expanded space about 28,000 square feet, Crain’s reported. Additional space at the building will be used for Lone Star’s offices as well as subsidiaries including its Hudson Advisors.

Lone Star’s rent will be in the mid-$80s per square foot, according to Crain’s. The lease is set to be about the same as the existing term the firm has, which expires in about 10 years, the publication reported.

Harly Stevens of CBRE represented Lone Star, while Jared Solomon of Vornado represented the landlord in-house. Both sides declined to comment via spokespeople.

In January 2016, national talent agency UTA signed a 43,087-square-foot deal for its New York City offices to occupy the entire seventh and pieces of the eighth and ninth floors. The move was a major jump for the Beverly Hills, Calif.-based agency, which previously occupied about 15,000 square feet in the building.

https://commercialobserver.com/2017/02/vornado-signs-private-equity-manager-to-additional-28k-sf-at-888-seventh-avenue/

Fairstead Capital Relocating Its Offices to 250 West 55th Street

250 WEST 55TH STREET. PHOTO: COSTAR GROUP

250 WEST 55TH STREET. PHOTO: COSTAR GROUP

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.

https://commercialobserver.com/2017/01/fairstead-capital-relocating-its-offices-to-250-west-55th-street/

Law Firm, Investment Company Ink 48K SF at 437 Madison Avenue

437 MADISON AVENUE.

437 MADISON AVENUE.

Two companies located at William Kaufman Organization’s 437 Madison Avenue have signed deals totaling 47,821 square feet to remain in the building, the landlord announced in a release today.

In the larger transaction, law firm Montgomery McCracken Walker & Rhoads inked a 28,297-square-foot direct lease, after it was a subtenant in the building for Nixon Peabody starting in 2011.

Montgomery McCracken will continue to occupy a portion of the 23rd floor and the entire 24th floor of the 850,000-square-foot office tower between East 49th and East 50th Streets. The asking rent in the 10-year deal was $90 per square foot.

“The decision to remain at 437 Madison made sense to us for our attorneys and clients during a critical time for growth and we’re excited to expand our presence in the building,” Lee Unterman, a managing partner of Montgomery McCracken’s New York office, said in prepared remarks.  

Michael Lenchner of Sage Realty Corporation, the leasing and management arm of William Kaufman Organization, negotiated the deal.

In the second transaction, investment management company Prelude Capital has signed a six-year early renewal and is expanding its offices in the building. It will occupy a total of 19,524 square feet on a portion of the 33rd and 34th floors. Previously, Prelude occupied just 7,000 square feet on the 33rd floor. The asking rent was $105 per square foot. Lenchner negotiated the deal. 

“The expansion of our 437 Madison Avenue offices represents a commitment to the highest quality infrastructure in an ideal location with an established long-term partner,” Cisco del Valle, a co-founder of Prelude Capital, said in the release.

William Kaufman Organization recently completed a top down, $60 million renovation of the 40-story building, which includes a new 8,870-square-foot lounge on the 15th floor, a redesigned lobby and arcade, new plaza, renovated elevators and upgraded the mechanical systems.

“These transactions are a clear indicator of the ongoing resurgence of the Midtown East market and the success of our multi-million dollar capital improvement program at 437 Madison Avenue, an iconic property that has been reimagined for the 21st century,” Lenchner said in a statement.

https://commercialobserver.com/2016/12/law-firm-investment-company-ink-48k-sf-at-437-madison-avenue/

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/

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

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/