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

Cantillon Capital Takes Full Floor at 499 Park Avenue

499 PARK AVENUE.

499 PARK AVENUE.

Hedge fund manager Cantillon Capital is moving its New York City offices to 499 Park Avenue after agreeing to a lease for the entire 11,303-square-foot ninth floor at the Midtown office tower.

Cantillon inked the deal for its full-floor space at the 27-story, 300,000-square-foot property between East 58th and East 59th Streets in late June, according to CoStar Group data. The financial services firm, which has offices in New York and London, is set to move into the I.M. Pei-designed building this coming fall, per CoStar.

Cantillon will leave its current space at the LeFrak’s 40 West 57th Street, several blocks west in Midtown near the corner of Avenue of the Americas.

Asking rent and length of lease were not disclosed. A CBRE team of Evan Fiddle and Michael Movshovich represented Cantillon in the transaction, while 499 Park Avenue landlord American Realty Advisors was represented by CBRE’s James AckersonPaul AmrichNeil King and Patrice Meagher, the brokerage said in a release announcing the deal.

A CBRE spokeswoman did not immediately return a request for further comment on the transaction.

Major tenants at 499 Park Avenue include brand consultancy Lippincott, the Howard Lutnick-led financial services firms Cantor Fitzgerald and BGC Partners (parent company of Newmark Knight Frank) and residential brokerage Halstead Property.

https://commercialobserver.com/2017/07/cantillon-capital-takes-full-floor-at-499-park-avenue/

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

5 MANHATTAN WEST. PHOTO: BROOKFIELD PROPERTY PARTNERS

5 MANHATTAN WEST. PHOTO: BROOKFIELD PROPERTY PARTNERS

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.

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/

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