Deutsche Bank will move from Wall Street to Columbus Circle

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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

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

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

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.

https://therealdeal.com/2016/06/27/steven-cohens-personal-fund-leases-175k-sf-at-55-hudson-yards/