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/

Vornado, SL Green land private equity tenant at 280 Park

Antares Capital signs 12-year lease for 55K sf

280 Park Avenue in Midtown

280 Park Avenue in Midtown

Private equity firm Antares Capital signed a 55,000-square-foot lease at Vornado Realty Trust and SL Green Realty’s 280 Park Avenue.

The lease is for 12 years and asking rents in the building are in the $90s. Antares is moving from Fisher Brothers’  299 Park Avenue.

The firm was a subsidiary of now-defunct GE Capital until last year, when it was sold to Canada Pension Plan Investment Board as part of a $12 billion deal. CBRE’s Paul Amrich and Neil King represented Antares, while Vornado’s Andrew Ackerman and CBRE’s Peter Turchin and Sam Seiler represented the landlord.

SL Green and Vornado spent $150 million renovating the 1.2 million-square-foot property, which they bought for close to $500 million in 2011.

The building will be the new home of the Four Seasons Restaurant, which was kicked out of RFR Realty’s Seagram Building.

Last year, Singapore’s sovereign wealth fund GIC signed a 50,000-square-foot lease at the tower.  [Crain’s] — Konrad Putzier

TradingScreen takes 20K sf at 1 Penn Plaza

Financial tech provider signed 10-year lease for office at Vornado building

One Penn Plaza

One Penn Plaza

Financial technology provider TradingScreen signed a 10-year lease for nearly 20,000 square feet at Vornado Realty Trust’s One Penn Plaza.

The deal will see the company taking 19,944 square feet on the 49th floor of the 2.6 million-square-foot building, Commercial Observer reported. Asking rents in the deal were not made available. However, in October, Fuse Media took 27,000 square feet at the building, and asking rents in that 10-year deal were between $67 and $72 per square foot.

TradingScreen currently rents space at SL Green Realty’s  215 Park Avenue South, according to the publication.

David Dusek and Paul Ferraro of JLL represented TradingScreen. Vornado was represented in-house by Craig Panzirer and Jared Silverman.

One Penn Plaza was left with a 150,00-square foot vacancy when the U.S. Customs and Border Protection agency left the building for One World Trade Center, and Vornado has been slowing working to fill the space.

The company is planning a massive overhaul of its Penn Plaza portfolio, and intends to combine One and Two Penn Plaza office buildings into a 4 million-square-foot complex.

“The goal here is to achieve market rents as much as 50 percent higher as market rents,” Vornado CEO Steven Roth said of the plan on a company earnings call in February. [CO] — Miriam Hall

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

Four Seasons restaurant finds new home at 280 Park

Iconic eatery signed 19K sf lease at building owned by Vornado, SL Green

From left: The Four Seasons restaurant and 280 Park Avenue

From left: The Four Seasons restaurant and 280 Park Avenue

After getting the boot by Aby Rosen, the Four Seasons restaurant found a new home at SL Green Realty and Vornado Realty Trust’s 280 Park Avenue.

According to sources cited by the New York Post, the restaurant’s owners Julian Niccolini and Alex von Bidder signed a lease for a 19,000-square-foot lease at the office building. Brazilian architect Isay Weinfeld will design the new restaurant.

Rosen and Michael Fuchs’ RFR Realty last year announced it would not renew the restaurant’s lease at the Seagram Building, which had been its home since 1959. The restaurant’s lease ends July 31, and Rosen has been reportedly looking to raise $30 million to renovate the space.

Classic Restaurants, which owns the restaurant, trademarked the names of the Pool Room and the Grill Room last year when it realized it would not be staying at 375 Park Avenue. [NYPost] – Konrad Putzier