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 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/

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/

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/

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/

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/

Norway’s Largest Lender Relocating North American HQ to 30 Hudson Yards

Norwegian financial services giant DNB Bank has signed a 44,517-square-foot deal at the future skyscraper at 30 Hudson Yards for its North American headquarters, landlord Related Companies announced today.

A rendering of 30 Hudson Yards. : Related Companies. 

A rendering of 30 Hudson Yards. : Related Companies. 

The firm will occupy the entire 68th floor of the planned 90-story tower, which Related and Oxford Properties Group hope to complete in early 2019. Asking rents in the building are north of $100 per square foot, according a spokeswoman for Related.

DNB expects to relocate from the MetLife Building at 200 Park Avenue South adjacent to Grand Central Terminal. The lease will run for 15 to 20 years, pending certain “conditions,” Bloomberg News reported, without elaborating. 

“After more than 40 years in traditional Midtown Manhattan, we are very excited to be moving to the West Side and joining Related at 30 Hudson Yards, in what will be a wonderful, new, internationally significant building and a truly vibrant New York neighborhood,” Giacomo Landi, an executive vice president of DNB, said in prepared remarks. “We fully expect that establishing our new office space in Hudson Yards will help us attract and retain key talent.”

The move to Hudson Yards is part of DNB’s plans to modernize all of its office space worldwide, a process that began in 2012 with its headquarters in Oslo. There DNB relocated 4,000 people from more than 10 locations to one modern office complex. DNB has also moved its outposts in London, Singapore and Stockholm in recent years.

Don Preate and Frank Coco of Cushman & Wakefield represented DNB in the transaction, while Stephen Winter of Related represented the landlords. Preate and Coco did not immediately respond to a request for comment via a spokeswoman.

“We particularly appreciate the focus that DNB places on environmental stewardship and employee wellness, both areas we have invested in heavily,” Jay Cross, the president Related Hudson Yards, said in a statement. “DNB will complement our world-class roster of tenants.”

The 1,296-foot tall 30 Hudson Yards has already attracted major firms including Wells Fargo Securities, Time Warner and investment firm Kohlberg, Kravis & Roberts.

Commercial Observer, Liam La Guerre, Sept. 22, 2016, 3 p.m.

Global Securities Company Grabs 29K SF at Charles S. Cohen’s 623 Fifth Avenue

A technology-focused trading firm specializing in global securities has signed a two-floor lease to relocate its corporate headquarters to Fifth Avenue, Commercial Observer has learned.

Arxis Capital will occupy 29,000 square feet at the 400,000-square-foot 623 Fifth Avenue, according to a press release provided by landlord Charles S. Cohen

623 Fifth Avenue. Photo: CoStar Group. 

623 Fifth Avenue.
Photo: CoStar Group. 

“We’re delighted that one of the highly successful, new breed of technology-driven financial firms, has chosen 623 Fifth Avenue for their home,” Cohen, the head of Cohen Brothers Realty, said in prepared remarks.

Asking rent in the transaction was $95 per square foot, the release indicates. A source familiar with the deal said the lease is for five years.

Arxis, which was founded in 2014 by former Bank of America Merrill Lynch executives, is based at 527 Madison Avenue between East 53rd and East 54th Streets. The move will be a major upgrade for the company, as it leases 7,500 square feet at its current digs, a source said.

Silvio Petriello, Alexander Golod and Ben Friedland of CBRE represented the tenant, while Marc Horowitz of Cohen Brothers Realty along with a team from Colliers International. The tenant’s brokers declined to comment via a spokeswoman.

Formerly dubbed the Swiss Bank Tower, the building is also home to the flagship Saks Fifth Avenue store. The retailer leases nearly 80,000 square feet at the base of the 36-story structure, according to CoStar Group.  

Commercial Observer, Terence Cullen, Sept. 9, 2016, 11:45 a.m.

BlackRock narrows HQ search down to three locations

One World Trade Center and BlackRock’s Larry Fink

One World Trade Center and BlackRock’s Larry Fink

Asset manager BlackRock narrowed its list of potential new headquarters locations down to three: The Durst Organization’s One World Trade Center, the Related Companies and Oxford Properties Group’s Hudson Yards and Brookfield Property Partners’ Manhattan West.

The company currently occupies around 700,000 square feet in two buildings – 55 East 52nd Street and Rudin Management Company’s 40 East 52nd Street – where its lease expires in 2023. The Real Deal reported in February that it tapped a JLL team headed by Peter Riguardi to find a new, larger office space.  According to the Wall Street Journal, BlackRock is looking to lease 850,000 square feet at a possible annual rent of around $60 million.

One World Trade Center was 69 percent leased as of early June, and landing Blackrock would bring the 3 million-square-foot tower close to full occupancy. Hudson Yards, meanwhile, has already landed major finance tenants Wells Fargo and fund manager KKR.

BlackRock's employee count has grown from 5,341 at the end of 2008 to currently 13,000. As banks and other Wall Street firms suffered from the aftermath of the 2008 financial crisis and stricter financial regulation, asset managers like BlackRock and the Blackstone Group have captured market share.

[WSJ] – Konrad Putzier,

The Real Deal, Asset manager considering 1 WTC, Hudson Yards and Manhattan West
July 27, 2016 05:40PM

 

 

Winton Capital leaves Seagram Building for 315 PAS

Hedge fund to take 35K sf at Columbia Property Trust tower

315 Park Ave South in NoMad (inset from top: Winton Capital’s David Harding and Columbia Property Trust’s Nelson Mills)

315 Park Ave South in NoMad (inset from top: Winton Capital’s David Harding and Columbia Property Trust’s Nelson Mills)

U.K.-based hedge fund Winton Capital is relocating from the Seagram Building to 315 Park Avenue South in Midtown South.

The investment firm signed a 10-year lease for 34,844 square feet at Columbia Property Trust’s under-renovation office tower, according to the Wall Street Journal. Columbia CEO Nelson Mills said the move was a “badge of honor” for 315 Park.

Winton will have a private elevator, lobby and elevators in the 328,193-square-foot building. The asking rent for the space was $105 per square foot.

Columbia, a real estate investment trust, paid $375 million to buy the 20-story pre-war building from Spear Street Capital in 2014. L&L Holding Company manages the property and handles leasing services.

Spear Street bought the building in 2013 from Craig Nassi’s BCN Development for $250 million.
Columbia has also reeled in new tenants including Equinox, which is taking 44,000 square feet, and Fullscreen, a YouTube channel aggregator that’s taking 17,000 square feet.  Oracle Corp. plans to expand its footprint there, as well.

https://therealdeal.com/2016/07/11/winton-capital-leaves-seagram-building-for-315-park-avenue-south/

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/

Tailwind Capital Renews 14K-SF Lease at SL Green’s 485 Lexington Avenue

485 LEXINGTON AVENUE (PHOTO: COSTAR GROUP).

485 LEXINGTON AVENUE (PHOTO: COSTAR GROUP).

Private equity company Tailwind Capital has signed an early renewal for its 14,206-square-foot offices at SL Green Realty Corp.’s 485 Lexington Avenue.

The investment firm will remain on the entire 23rd floor of the 32-story Midtown office tower between East 46th and East 47th Streets, which is also known as the Grand Central Square, according to the tenant’s broker CBRE. The firm declined to provide the asking rent in the five-year deal.

A CBRE team of Evan FiddleBen Friedland and Michael Movshovich represented the tenant. While Tailwind Capital looked around at other buildings for its offices, it “ultimately found that 485 Lexington was the best solution for them,” Mr. Fiddle said, without providing further explanation.

Natasha Brown and David Kaufman of SL Green represented the landlord in-house on the transaction. Kaufman did not return a request for comment.

SL Green bought the 925,364-square-foot steel and glass building at 485 Lexington Avenue and the nearby 750 Third Avenue for a combined $480 million in 2004 from pension fund TIAA-CREF, according to city records.

Current tenants in the tower include insurance agency The Travelers Companies, investment firm GoldenTree Asset Management and printer and photo-copying equipment company Xerox Corporation.

https://commercialobserver.com/2016/06/tailwind-capital-renews-14k-sf-lease-at-sl-greens-485-lexington-avenue/

Merrill Lynch takes 125K sf at 75 Rockefeller Plaza

Landlord RXR Realty poured $150M into renovations since 2014

From left: 717 Fifth Avenue, 75 Rockefeller Plaza and RXR’s Scott Rechler

From left: 717 Fifth Avenue, 75 Rockefeller Plaza and RXR’s Scott Rechler

Merrill Lynch Wealth Management is trading its Fifth Avenue digs for four floors at RXR Realty’s newly-renovated 75 Rockefeller Plaza.

The investment company signed a lease for 125,000 square feet on the second through fifth floors of the 623,000-square-foot building, Commercial Observer reported. Since 1998, Merrill Lynch has roughly the same amount of space 717 Fifth, according to CoStar.

Terms of Merrill’s long-term lease at 75 Rock were not reported, but asking rents in Midtown averaged $81 per foot during the first three months of 2016, according to Colliers International.

Scott Rechler’s RXR took control of the building in 2013 when it signed a 99-year, triple-net lease with the owner, British billionaire Mohamed Al Fayed. It has poured $150 million into renovations since the 2014 departure of anchor tenant Time Warner Cable.

Merrill was represented by CBRE’s Robert Alexander, Ryan Alexander, Ramneek Rikhy and Emily Jones. Cushman & Wakefield’s Bruce Mosler, Tara Stacom and Mikael Nahmias represented RXR.

In addition to Merrill, other tenants include doll brand American Girl, which signed a 40,000-square-foot lease at the building’s retail space. Last year, Bank of America took a 200,000-square-foot lease at 75 Rock. [CO] – E.B. Solomont

https://therealdeal.com/2016/06/21/merrill-lynch-takes-125k-sf-at-75-rockefeller-plaza/

TIAA signs two new tenants at 685 Third Avenue

Commonwealth Secretariat and NewOak Capital will take about 46K sf between them

TIAA’s Kevin Smith and 685 Third Avenue in Midtown (Photo: CoStar)

TIAA’s Kevin Smith and 685 Third Avenue in Midtown (Photo: CoStar)

A financial services firm and the governing body of the Commonwealth of Nations, formerly the British Commonwealth, will soon take up residence at TIAA’s 685 Third Avenue.

Commonwealth Secretariat, an organization representing 53 sovereign states, mostly part of the former British Empire, signed a deal to take 27,000 square feet on the building’s 11th floor at an asking rent in the $60s per square foot

Michael Burgio and Daniel Organ of Cushman & Wakefield represented the tenant, which is leaving its current home at 800 Second Avenue, the New York Post reported.

NewOak Capital will take the buildings 21st floor, a total of 17,800 square feet. Asking rent for that space was higher, $77 per square foot. Newmark Grubb Knight Frank’s Larry Zuckerman and Dan Gronich represented NewOak.

JLL’s Matt Astrachan, Frank Doyle, Clark Finney, Jonathan Fanuzzi and Dan Santagata represented the landlord in both deals.

The building’s largest tenant, Salesforce, recently announced it was planning to consolidate its operations at its new headquarters at 3 Bryant Park, which is now officially known as the Salesforce Tower New York.

TIAA took out a $190 million loan last year to fund renovations at the 646,000-square-foot Midtown East tower.

https://therealdeal.com/2016/06/15/tiaa-cref-signs-two-new-tenants-at-685-third-avenue/

Citigroup closes on $1.8B buy of Tribeca HQ from SL Green

Bank had sold 388-390 Greenwich Street in 2007

From left: Citigroup CEO Michael Corbat, 388Greenwich Street and Marc Holliday

From left: Citigroup CEO Michael Corbat, 388Greenwich Street and Marc Holliday

UPDATED, June 13, 6:35 p.m.: Citigroup closed on the repurchase of its Tribeca headquarters at 388-390 Greenwich Street from SL Green Realty for $1.76 billion, according to public records filed with the city Monday.

The banking giant sold the two buildings to SL Green and Ivanhoe Cambridge for $1.6 billion in 2007. At the time, it secured an option to repurchase the buildings, which it now made use of. The Real Deal reported Citigroup’s plans to buy back the tower in January.

Citigroup’s headquarters consists of the nine-story, 760,000-square-foot building 390 Greenwich Street and the adjacent 39-story, 1.59-million-square-foot tower 388 Greenwich Street. Both are currently leased out to the bank.

Citi had named the buildings as its global headquarters in January and is currently renovating them. “As the establishment of our global headquarters in Lower Manhattan shows, we are committed to the city remaining our home for years to come,” a spokesperson for the bank told TRD.

SL Green had bought out Ivanhoe Cambridge in 2014 for $783 million, meaning it will receive all proceeds from the sale. In April, the company announced that it will use the money “to repay approximately $345 million of its corporate credit facility and retire the $1.45 billion mortgage” from Wells Fargo on the building.

When SL Green first announced the pending deal in January, it put the price at $2 billion. It wasn’t immediately clear why the final sales price is more than $200 million lower. A spokesperson for SL Green could not immediately be reached.

The sale marks New York’s largest commercial real estate deal of 2016 to-date. The runner up is 1285 Sixth Avenue, which RXR Realty, David Werner Real Estate and China Life bought for $1.65 billion in May. Also in May, Saudi-based Olayan Group bought the Sony Building at 550 Madison Avenue from Clipper Equity and the Chetrit Group for $1.4 billion. Both deals were first reported by TRD.

Schroders takes 74K sf at 7 Bryant Park

Bank of China bought the 30-story tower for $600M last year

7 Bryant Park and a bank of China location

7 Bryant Park and a bank of China location

The U.S.-based arm of global financial services firm Schroders is set to move to Bank of China’s 7 Bryant Park in Midtown.

Schroders Investment Management North America signed a 15-year lease to take the 17th through 21st floors, and part of the 16th floor, for a total of 74,000 square feet, the New York Post reported.

Asking rent for the space was reportedly above $100 per square foot. Mary Ann Tighe and Howard Fiddle of CBRE represented Bank of China in the deal, while Stuart Eisenkraft represented Schroders.

Schroders is leaving its offices at 875 Third Avenue in 2017.

Houston-based developer Hines built the 450,000-square-foot 7 Bryant Park along with JPMorgan’s asset management arm. Bank of China, originally the building’s anchor tenant, decided to buy the property last year for $600 million. The bank occupies 250,000 square feet there. Hines remains the property and asset manager.  [NYP] — Ariel Stulberg

GE Capital takes space at RFR’s 285 Madison

Recently-repositioned prewar property now 45% leased

    From left: Aby Rosen and 285 Madison Avenue in Midtown

 

From left: Aby Rosen and 285 Madison Avenue in Midtown

Financial services giant GE Capital is set to take up residence on the 15th and 16th floors of Aby Rosen’s 285 Madison Avenue.

The company signed a 16-year lease for 43,000 square feet at the recently-renovated, 26-story Midtown office building.

Asking rent for the space was in the low $70s.

Alexander Chudnoff, Mitchell Konsker and Dan Turkewitz of JLLrepresented Rosen’s RFR Realty in the deal, along with in-house broker AJ Camhi, the New York Post reported. GE Capital was repped by CBRE’s Sinclair Li, Sacha Zarba, Frederick Fackelmayer and Ryan Alexander.

RFR bought the 530,000-square-foot 285 Madison Avenue for $190 million back in 2012. The developer then spent millions repositioning the building, adding amenities such as a roof deck and a fitness center.

The developer sold the Soho Hotel at 11 Howard Street last month to German asset manager Commerz Real for $170 million. [NYP] – Ariel Stulberg

Two Financial Firms Each Nab Leases of Over 7K SF at 437 Madison Avenue

A hedge fund manager and an asset-management firm have signed relocation deals at William Kaufman Organization’s 437 Madison Avenue.

Harbor Spring Capital, the hedge fund manager, has signed a six-year lease for 7,575 square feet at the building between East 49th and East 50th Streets, according to a press release from the landlord. The firm will occupy a portion of the 28th floor at the 850,000-square-foot building, when it relocates from 99 Park Avenue in the third quarter of this year.

Also on the 28th floor, Ospraie Management, the asset management firm, signed a five-year deal for 7,973 square feet. The company will relocate from 320 Park Avenue, also in the third quarter of 2016.

Asking rents in the building, which commenced a $60 million capital improvement program two years ago, range from $80 to $110 per square foot, according to The Wall Street Journal, which first reported news of the deal. The renovations include a redesigned lobby and arcade area, a new plaza, renovated elevators, upgraded building systems and backup generator, an updated façade and amenities like a private 8,870-square-foot, 15th-floor “sky lounge” with skyline views.

Michael Lenchner of Sage Realty Corporation, the leasing and management division of William Kaufman Organization, represented the building’s ownership in-house in both transactions, along with JLL’s Frank Doyle, David Kleiner, Cynthia Wasserberger, Hayley Shoener and Harlan Webster. Evan Margolin and Lance Leighton of Savills Studley represented Harbor Spring Capital, and Brad Needleman and Alexander Golod of CBRE represented Ospraie Management. A spokesman for Savills Studley said the brokers declined to comment as did a spokeswoman for CBRE.

Sage has also leased approximately 8,000 square feet of pre-built space to Darktrace Limited and HT Capital Advisors, bringing the total square footage leased in the building to 24,000 square feet over the last month. Medallion Financial, a finance company that specializes in the taxicab and home improvement businesses, renewed its lease in the building, as Commercial Observer reported in January.

“The quick lease-up of our high-end, build-to-suit office spaces are a testament to the quality of our building, our strong central location and our state-of-the-art amenities, modern finishes and unparalleled services,” Mr. Lenchner said in prepared remarks. “We are proud to offer partial or full floor build-to-suit opportunities to accommodate tenants of all sizes.”

https://commercialobserver.com/2016/05/two-financial-firms-each-nab-leases-of-over-7k-sf-at-437-madison-avenue/