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

Wealth Management Firm for Blackstone Co-Founder Moves Within Midtown

399 PARK AVENUE. PHOTO: COSTAR GROUP

399 PARK AVENUE. PHOTO: COSTAR GROUP

Peterson Management, which manages the family assets of Peter Peterson,Blackstone Group co-founder and former Lehman Brothers chief executive officer, is heading to the former Citigroup headquarters on Park Avenue.

The firm will relocate from 26,000 square feet at Paramount Group’s 712 Fifth Avenue to 40,000 square feet of offices at Boston Properties’ 399 Park Avenue, The Real Deal reported. The outfit led by Peterson’s son, Michael Peterson, will set up shop in a penthouse-like space that includes outdoor terraces and a glass box constructed on top of the building’s setback. Rents in the 15-year lease start at $130 a square foot and rise to $150 a square foot towards the end of the term, according to TRD.

Seth Hecht of Cushman & Wakefield and Joseph Conwell of Philadelphia-based GPX Realty Partners represented Peterson. (GPX Realty is a subsidiary of private investment firm GPX Enterprises, another company headed by Michael Peterson.) It wasn’t immediately clear who represented the landlord.

A spokesman for C&W declined to comment, and Boston Properties’ spokeswoman didn’t respond to a request for comment.

The wealth management company will relocate along with the nonprofit Peterson Foundation, which Peter Peterson launched in 2008 to focus on fiscal sustainability and national debt.

BY REBECCA BAIRD-REMBA NOVEMBER 6, 2017 11:31 AM

https://commercialobserver.com/2017/11/wealth-management-firm-for-blackstone-co-founder-moves-within-midtown/

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

 

 

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/

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

Stat of the Week: $38.08 Per Square Foot

At $83.54 per square foot, Midtown Class A overall average asking rents are 2.3 percent higher than three months ago. This average asking rent includes 40 buildings that stand out above the rest, and these trophy assets have the highest asking rents in Midtown. Through the first quarter, the Midtown trophy set averaged $121.62 per square foot, a $38.08 premium over the Midtown Class A average. Trophy asking rents jumped 6.2 percent higher and outpaced Midtown Class A gains of only 3.2 percent in the past year. The first quarter also marked the largest spread between trophy asking rents and Midtown Class A asking rents in the last 30 quarters (or seven and a half years). Midtown Class A asking rents are still 9.8 percent lower than the previous historical highs in 2008, while trophy asking rents are only 6.9 percent off of the mark.

Trophy net effective rents are significantly higher than Midtown Class A as well. Through the first quarter of 2016, net effective rents for trophy assets averaged $107.13 per square foot, a $41.64 premium over the Midtown Class A average. This premium is 95.1 percent higher than the historical $21.34 per square foot average spread between the trophy set and Midtown Class A net effective rents.

Higher asking rents are not the only reason a building is in the Midtown trophy set. Demand for these buildings is high as well, as the current vacancy rate of 8.6 percent is 110 basis points lower than the Midtown Class A vacancy rate of 9.7 percent. Over the past five quarters, trophy assets had an average vacancy rate of 7.9 percent, which actually jumped in the first quarter due to 307,884 square feet added to the market at 65 East 55th Street. During this time, vacancy in the trophy set averaged 170 basis points lower than Midtown Class A. With all of these significant differences, it’s clear that trophy assets are certainly the winning prize, towering over Class A Midtown space in every aspect.

https://commercialobserver.com/2016/05/stat-of-the-week-38-08-per-square-foot/