Three Financial Services Firms Ink New Office Leases at 600 Lex

SL Green Realty Corp. has signed three new financial services tenants at its 600 Lexington Avenue office tower in Midtown East, the real estate investment trust announced today.

In the largest deal, investment banking advisory firm GLC Advisors & Co. took 12,487 square feet comprising the entire ninth floor of the 36-story, 305,000-square-foot property on the northwest corner of East 52nd Street. GLC signed the seven-year lease, which will commence in December, late last month and will move to 600 Lexington Avenue from its current location at Cohen Brothers Realty Corp.’s 805 Third Avenue.

Private equity firm NexPhase Capital, meanwhile, inked a five-year lease for the entire, 8,607-square-foot 12th floor at the building. The deal, which was signed this week, is anticipated to commence at the beginning of November and will see NexPhase relocate from Boston Properties’ 399 Park Avenue.

Finally, alternative investment manager KCL Capital signed a five-year deal to take the entire 6,780-square-foot 28th floor at 600 Lexington Avenue. The transaction was sealed late last month, with KCL’s lease expected to commence in the middle of October. The company’s current location was not disclosed.

Asking rent in the transactions ranged from the low $70s to mid-$80s per square foot, according to sources with knowledge of the deals. A JLL team of Paul GlickmanDiana BiasottiJonathan Fanuzzi and Ben Bass represented SL Green in the transactions. Daniel Posy and Jason Roberts of Savills Studley handled the GLC and KCL leases for the tenants, while Newmark Knight Frank’s Brian Goldman and Eric Cagner worked on behalf of NexPhase.

The deals take 600 Lexington Avenue to “nearly 99 percent occupancy,” Steven Durels, SL Green executive vice president and director of leasing and real property, said in a statement. Durels added that the building’s “efficient, small floors with floor-to-ceiling windows and white glove service” have proven “highly appealing to upscale tenants.”

Tenants at the property include hedge funds MKP Capital ManagementElement Capital and LibreMax Capital.

BY REY MASHAYEKHI SEPTEMBER 15, 2017 8:00 PM

https://commercialobserver.com/2017/09/three-financial-services-firms-ink-new-office-leases-at-600-lex/

Investment Adviser Ditches Park Avenue Digs for Lexington Avenue Address

599 LEXINGTON AVENUE. PHOTO: COSTAR GROUP

599 LEXINGTON AVENUE. PHOTO: COSTAR GROUP

Peconic Partners, an investment adviser and management company, has signed an 8,623-square-foot lease for 10 years at Boston Properties’ 599 Lexington Avenue, according to the landlord’s broker, CBRE.

The financial consulting firm will occupy the entire 46th floor of the 47-story building between East 52nd and East 53rd Streets. The asking rent in the deal was $110 per square foot.

Peconic is moving a few blocks east from the 30-story 350 Park Avenue between East 51st and East 52nd Streets, where it has 3,600 square feet on the top floor, according to CoStar Group.

A CBRE team of Peter Turchin, Christie Harle, Arkady Smolyansky, Evan Fiddle and Caroline Merck represented Boston Properties in the deal. Marc Shapses and John Johnson of Savills Studley brokered the transaction for Peconic.

“Peconic was drawn to the spectacular city-wide views and exciting changes underway in the neighborhood surrounding 599 Lexington Avenue where Boston Properties is investing an additional $260 million at 399 Park Avenue and 601 Lexington Avenue, which are directly across from 599 Lexington,” Harle said in a prepared statement.

Boston Properties recently completed a $15 million renovation of 599 Lexington Avenue, which included a redesigned lobby by FXFOWLE upgrades to the interiors of the elevator cabs and a modernization to the mechanical systems.

Shapses and Johnson did not immediately respond to a request for comment via a spokeswoman for Savills Studley.

BY LIAM LA GUERRE JUNE 12, 2017 1:39 PM

https://commercialobserver.com/2017/06/investment-adviser-ditches-park-avenue-digs-for-lexington-avenue-address/

Welsh, Carson inks 31K sf lease at Boston Properties’ 599 Lex

599 Lexington Avenue (Credit: Boston Properties)

599 Lexington Avenue (Credit: Boston Properties)

UPDATED, March 1, 5:26 p.m.: Private equity shop Welsh, Carson, Anderson & Stowe is moving its office from Park Avenue to Boston Properties’ 599 Lexington Avenue, where the firm signed a lease for 31,000 square feet.

Welsh, Carson – which focuses primarily on the healthcare and tech fields – signed an 11-year lease at the nearly 1 million-square-foot tower between East 52nd and East 53rd streets, sources told The Real Deal.

The deal covers part of the 17th floor, where the starting rent was in the low $80s per square foot, and part of the 18th floor, where the rent starts in the mid $80s per square foot, according to CompStak.

Representatives for Welsh Carson and Boston Properties were not immediately available for comment.

The private equity firm, founded in 1979, took a majority stake last month in the iPad point-of-sale startup Revel Systems, which was valued at roughly $540 million after its last fundraise in 2015.

Welsh, Carson currently occupies 30,000 square feet two blocks away at Mutual of America Life Insurance Company’s 320 Park Avenue.

Boston Properties’  50-story tower was 96.8 percent leased at the end of the fourth quarter, according to the company’s most recent filings with the Securities and Exchange Commission.

The building is home to other finance tenants such as Fort Management and the Cowen Group, as well as the law firms Kirkpatrick & Lockhart and Grunfeld DeSiderio Lebowitz Silverman & Klestadt.

In addition to 599 Lexington, Boston Properties also owns the 59-story 601 Lexington Avenue across the street and the adjacent 200,000-square-foot building next door at 159 East 53rd Street.

The landlord is in the midst of a $50 million upgrade to 159 East 53rd Street that includes adding a food hall and dining space, amenities it hopes will make its Lexington Avenue towers more attractive to tenants.

A team led by Peter Turchin at CBRE handles leasing in the building. CBRE’s Mary Ann TigheKen Meyerson and Ben Friedland represented Welsh Carson.

 

https://therealdeal.com/2017/03/01/welsh-carson-inks-31k-sf-lease-at-boston-properties-599-lex/

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/

Financial Manager Renews at SL Green’s 485 Lexington Avenue

485 LEXINGTON AVENUE.

485 LEXINGTON AVENUE.

Offit Capital Advisors, an employee-owned finance firm, has inked a 10-year renewal at 485 Lexington Avenue, Commercial Observer has learned.

The firm will remain in its 14,206 square feet on the whole 24th floor of the SL Green Realty Corp.-owned building between East 46th and East 47th Streets, according to a press release from the landlord. Offit Capital has been based at the 921,370-square-foot property since September 2010, CoStar Group indicates.

Asking rent in the deal was $78 per square foot, according to an SL Green spokeswoman.

“We are delighted that Offit Capital has elected to extend its occupancy with us,”Steven Durels, the head of leasing for SL Green, said in prepared remarks. “Leasing momentum in Midtown East and particularly in the Grand Central [Terminal] submarket has remained very strong this year.”

Larry Zuckerman of Newmark Grubb Knight Frank represented Offit Capital, while Natasha Brown represented SL Green in-house. An NGKF spokeswoman did not immediately return a request for comment.

Earlier this month, Tailwind Capital signed an early renewal for its full-floor space one level below on the 23rd floor, as CO previously reported. The investment firm is staying in its 14,206-square-foot office for an additional five years. Memorial Sloan Kettering Cancer Center signed a 54,200-square-foot sublease for seven years on the second floor of the building in February 2014.

https://commercialobserver.com/2016/06/financial-manager-renews-at-sl-greens-485-lexington-avenue/

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/

Asset Manager Renews 31K-SF Lease at 601 Lexington Avenue

601 LEXINGTON AVENUE (PHOTO: COSTAR GROUP).

601 LEXINGTON AVENUE (PHOTO: COSTAR GROUP).

BTG Pactual, an investment bank, asset manager and wealth manager with a big presence in Latin America, yesterday signed an 11-year renewal for 31,401 square feet at 601 Lexington Avenue, a source with knowledge of the deal told Commercial Observer.

The public company occupies the entire 57th floor at the 59-story Class A office building, formerly known as Citigroup Center, between East 53rd and East 54th Streets. There was no official asking rent.

Brian Goldman and Josh Friedman of Newmark Grubb Knight Frank represented BTG Pactual in the deal. The landlord, Boston Properties, was represented in-house. Spokeswomen for both companies declined to comment.

The building’s largest tenant is international law firm Kirkland & Ellis, which takes up 400,000 square feet. Other tenants include Blackstone Group, which occupies 90,000 square feet and private equity firm Apax Partners, which is in 31,400 square feet.

The 1.7-million-square-foot building at 601 Lexington Avenue was designed by Hugh Stubbins & Associates and Emery Roth & Sons and erected in 1977. Boston Properties bought the building in 2001 for $750 million with Allied Partners, which later sold its share to Boston Properties. In 2014, Boston Properties announced it sold a 45 percent interest in the building to affiliates of Norges Bank Investment Management for $1.83 billion, a deal that included a 45 percent interest in two buildings in Boston.

https://commercialobserver.com/2016/04/asset-manager-renews-31k-sf-lease-at-601-lexington-avenue/