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/

Merchant Bank Raine Group Relocating NYC HQ to Park Avenue Tower

PARK AVENUE TOWER AT 65 EAST 55TH STREET. PHOTO: COSTAR GROUP

PARK AVENUE TOWER AT 65 EAST 55TH STREET. PHOTO: COSTAR GROUP

Merchant bank The Raine Group is moving its New York City headquarters to Park Avenue Tower at 65 East 55th Street after agreeing to take more than 33,000 square feet of space at the Midtown office building, Commercial Observer has learned.

The firm agreed to a 15-year, 33,253-square-foot lease last week for the entire 23rd and 24th floors at the 36-story, 620,000-square-foot property located on Park Avenue between East 55th and East 56th Streets, according to sources with knowledge of the deal.

The Raine Group plans to move to its new space next summer from its current digs at SL Green Realty Corp.’s 810 Seventh Avenue between West 52nd and West 53rd Streets, where it presently occupies the entire 17,320-square-foot 39th floor.

Asking rent in the transaction was $135 to $140 per square foot, sources said. Newmark Knight Frank’s Brian Goldman and Matthew Lorberbaum represented the tenant in the deal, while landlord Equity Office was represented in-house by Zach Freeman and Scott Silverstein as well as by NKF’s Brian WatermanJared HorowitzBen ShapiroBrent Ozarowski and Lance Korman.

Freeman, the vice president of leasing for the Blackstone Group-owned office landlord, said in a statement that the merchant bank was drawn to Park Avenue Tower’s recently completed renovations, which include a redesigned lobby and outdoor plaza and a new 20,000-square-foot tenant amenity center known as The Club. The amenity center features a fitness center, a recreation area equipped with billiards and Ping-Pong tables, a dining area and conference rooms.

“We are proud to have achieved optimal results for [The Raine Group], maximizing Equity Office’s design/buildout offering at Park Avenue Tower to create a dynamic and collaborative space in direct alignment with Raine’s objectives,” NKF’s Goldman said in a statement.

The Raine Group specializes in the technology, media and telecommunications industries, where it arranges and advises on transactions in addition to pursuing its own investments. The firm advised Japanese telecommunications corporation SoftBank in its $21.6 billion takeover of Sprint in 2013 and former Microsoft executive Steve Ballmer in his $2 billion purchase of the National Basketball Association’s Los Angeles Clippers in 2014, while also investing its own capital in ventures like Vice Media. In addition to its New York headquarters, The Raine Group has offices in San Francisco, Los Angeles, London, Shanghai and Mumbai.

At Park Avenue Tower, the merchant bank joins the likes of real estate investment firm Monday Properties, which recently agreed to take more than 16,000 square feet at the building, as CO reported earlier this month. Other companies on the property’s finance-heavy tenant roster include Cyrus Capital PartnersOak Hill Capital PartnersStephens Inc.Eminence Capital, the National Bank of Canada and talent agency ICM Partners.

BY REY MASHAYEKHI DECEMBER 20, 2017 1:52 PM

https://commercialobserver.com/2017/12/merchant-bank-raine-group-relocating-nyc-hq-to-park-avenue-tower/

LeFrak Leases 39K SF of Office Space to Nobu, Financial Firms at 40 West 57th Street

40 WEST 57TH STREET. PHOTO: CHRISTOPHER BRIDE FOR PROPERTYSHARK

40 WEST 57TH STREET. PHOTO: CHRISTOPHER BRIDE FOR PROPERTYSHARK

Private wealth management firm Tocqueville Asset Management and Nobu Restaurant Group recently finalized leases at LeFrak’s 40 West 57th Street, as part of a trio of new deals in the building totaling 39,335 square feet, according to landlord broker CBRE.

Tocqueville signed a 10-year agreement to renew its 25,000 square feet on the entire 19th floor of the 36-story office tower between Fifth Avenue and Avenue of the Americas. Asking rent for the space was “closer to $100 [per square foot] than it is to $200,” said CBRE’s Howard Fiddle, who represented LeFrak in the deal. The 29-year-old investment management company has been in the building for “at least 15 years,” according to Fiddle.

Nobu Restaurant Group, the multinational chain of Japanese-Peruvian fusion restaurants run by chef Nobu Matsuhisa and film star Robert De Niro, also decided to move its headquarters into the 1970s skyscraper. Last month the chain leased 8,800 square feet on part of the third floor for just under 10 years. It has operated Nobu 57, a two-level, 13,000-square-foot restaurant, in the bottom of the building since 2004, according to The New York Times. The 30-year-old hospitality group will move from 4,800 square feet at 3 East 57th Street, where it has subleased since 2011. 

Finally, Duquesne Fund Services, a firm that offers tech and back office services for hedge funds and family offices, recently inked a seven-year lease for 5,535 square feet on part of the third floor. The company is an affiliate of Duquesne Family Office, the investment management firm founded in 2010 by billionaire hedge fund manager Stanley Druckenmiller. While Duquesne Fund Services is a new business, Duquesne Family Office (and its predecessor, Duquesne Capital Management) has occupied 35,739 square feet on the building’s 24th and 25th floors via a 10-year lease since 2008.

Fiddle and CBRE’s Evan Fiddle (Howard’s son), Benjamin Joseph, Gregg Rothkin and Arkady Smolyansky, along with LeFrak’s Mary Lou Berk, represented the landlord in all three transactions. On the tenant side, Newmark Knight Frank’s Daniel Madison and James Saunders represented Tocqueville in its office renewal. (A spokesman for NKF didn’t return a request for comment.) And John Nugent and Craig Reicher, also of CBRE, handled the deal for Duquesne Fund Services. Nobu didn’t have a broker in the deal.

BY REBECCA BAIRD-REMBA DECEMBER 19, 2017 2:39 PM

https://commercialobserver.com/2017/12/lefrak-leases-39k-sf-of-office-space-to-nobu-financial-firms-at-40-west-57th-street/

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/

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

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/

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/

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

Stagwell Group inks 13-year lease at 1 WTC

The Stagwell Group’s President and Managing Partner Mark Penn and One World Trade Center

The Stagwell Group’s President and Managing Partner Mark Penn and One World Trade Center

The Stagwell Group is taking more than 83,000 square feet at 1 World Trade Center.

The investment firm inked a 13-year lease for the 62nd and 63rd floors of the tower, Crain’s reported. Stagwell, which was founded by former Microsoft executive Mark Penn, plans to move four of its subsidiaries — SKDKnickerbocker, PMX Agency, Code and Theory and Harris Insights — into the space. The company will have additional space to move more of its companies in the future.

Asking rent on the building’s 64th through 75th floors is $69 per square foot. The Durst Organization’s Eric Engelhardt and Cushman & Wakefield’s Tara Stacom represented Durst in the deal. Stagwell was represented by JLL’s Howard HerschMichael Berg and Doug Kauffman.

The 104-story tower still has 750,000 square feet of vacant space, mostly on the upper floors. Asking rents for above the 75th floor ranges from $80 to $100 per square foot. [Crain’s] — Kathryn Brenzel

https://therealdeal.com/2017/07/11/stagwell-group-inks-13-year-lease-at-1-wtc/

Investment Bank Relocating HQ Within Midtown With 30K-SF Deal

250 PARK AVENUE. PHOTO: COSTAR GROUP

250 PARK AVENUE. PHOTO: COSTAR GROUP

Needham & Company, an investment banking and asset management firm, is moving its headquarters to 250 Park Avenue, according to a news release from the landlord’s broker, Cushman & Wakefield.

The financial services company will occupy the entire 10th floor of the 21-story building, located between East 46th and East 47th Streets. The new deal brings the 543,000-square-foot building to 98 percent occupancy.

The asking rent in the 11-year transaction was $67 per square foot. Needham is relocating at the end of the year from 445 Park Avenue between East 56th and East 57th Streets. It will move its 100 employees to the new digs, as GlobeSt.com first reported.

C&W’s David Hoffman, Robert Billingsley and Whitnee Williams brokered the transaction for the landlord, AEW Capital Management, while Atco Brokerage Services’ Peter Goldich represented Needham.

“With its new full-floor office space in the heart of Manhattan and close proximity to other financial industry leaders, we know Needham will be very pleased with its new home,” Hoffman said in a statement.  

In addition to its New York City office, Needham has offices in Boston, Chicago, San Francisco and Menlo Park, Calif.

“They wanted to consolidate onto one floor,” Goldich said. “They were previously on two floor plates. And [250 Park Avenue] has a great presence on Park Avenue. They had been where they were for over 20 years. It was time to get something new and up to date.”

https://commercialobserver.com/2017/06/investment-bank-relocating-hq-within-midtown-with-30k-sf-deal/

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/

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/

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/

Securities Firm Jones Trading Takes a Top Floor at 757 Third Avenue

It all came down to sevens on this one.

Jones Trading, a securities brokerage and portfolio manager, has signed a seven-year lease for 7,000 square feet at 757 Third Avenue, Commercial Observer has learned.  

757 Third Avenue. Photo: CoStar Group

757 Third Avenue. Photo: CoStar Group

The company will occupy the 23rd floor of the 504,953-square-foot, 26-story building between East 47th and East 48th Streets, according to a source familiar with the deal. Asking rent in the transaction was $75 per square foot.

Paul Fomichelli and Kirill Azovtsev of JLL represented the tenant, while Matthew Coudert of George Comfort & Sons represented the landlord, Canadian investment manager Bentall Kennedy. Azovtsev declined to comment, and Coudert was not available for comment.  

Jones Trading is currently based a block away at 780 Third Avenue between East 48th and East 49th Streets. There the company leases 7,178 square feet on the third floor, according to CoStar Group. The lease at that property is slated to end later this year.

Bentall Kennedy in March 2015 scooped up the 54-year-old 757 Third Avenue from RFR Realty for $360 million. The Canadian financial firm completed the purchase with a $205 million acquisition loan provided by New York Life Real Estate Investors, as CO reported in April 2015.

Commercial Observer, Terence Cullen, Sept. 13, 2016, 1:23 p.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/