Investment bank gobbles up 41K sf at Paramount’s 1301 Sixth Ave.

Leerink Partners is moving from 299 Park Avenue

Leerink Partners is moving from 299 Park Avenue

An investment bank just inked a lease for the entire 12th floor of the Paramount Group’s 1301 Sixth Avenue.

Leerink Partners plans to take 40,811 square feet at the 45-story office tower, the New York Post reported. Details on the deal weren’t immediately available, but asking rent in the building ranges from the mid-$70s to $90s per square foot.

A team from Savills Studley represented Leerink while a JLL team repped Paramount on the deal.

Leerink will leave behind a 26,000-square-foot office on the 21st floor of 299 Park Avenue. The company wanted to have a full-floor office but needed more space.

On its website, Paramount lists the entire 38th, 41st and 42nd floors as available. Part of the 35th floor — just over 15,000 square feet — is also up for grabs. In January, reinsurance company Swiss Re inked a lease for the 43rd through 45th floors of the 1.7 million-square-foot building. [NYP] — Kathryn Brenzel

Berenberg Capital Markets Leases Nearly 32K SF at 1251 Avenue of the Americas



German bank Berenberg subsidiary Berenberg Capital Markets is relocating to the entire 31,700-square-foot top floor of Mitsui Fudosan’s 1251 Avenue of the Americas between West 49th and West 50th Streets.

The 10-year deal for the 53rd floor was signed last Friday and was first reported on by The New York Post. The asking rent at the 2.1-million-square-foot building was $110 per square foot, according to Benjamin Brass of JLL, who represented Berenberg Capital Markets along with JLL’s Mitchell Konsker and Alexander Chudnoff.

Berenberg Capital Markets will move from 712 Fifth Avenue between West 55th and West 56th Streets, where it occupies 9,000 square feet, in the first quarter of 2018, according to Bass.

“Berenberg Capital Markets sought to expand its business and footprint in Manhattan, and there was no better location for the company than 1251 Avenue of the Americas,” Chudnoff said in a prepared statement. “The bank was attracted to the office tower for its prestigious address and location as well as the uniqueness of the space.”

Newmark Grubb Knight Frank’s David Falk and Peter Shimkin represented the landlord in the deal. A spokesman didn’t respond with a comment.

“Berenberg opened its first branch in the United States in 1883, and for more than five years, the bank has been offering investment banking and asset management services to its ever-expanding client base in the U.S.,” Dave Mortlock, a member of Berenberg’s extended management board, said in a press release. “We are glad to grow our business in New York and look forward to moving into our new offices.”


Financial Tech Company Takes Full Floor at Minskoff’s 1166 Avenue of the Americas

1166 Avenue of the Americas

A spinoff of D.E. Shaw & Co. has signed its own deal at 1166 Avenue of the Americas—the home of its former parent company.

Arcesium, a technology firm specializing in financial services, has signed a 39,074-square-foot lease for the entire fourth floor, according to a press release from JLL, the landlord’s leasing agent.

Asking rent in the deal was $78 per square foot, according to a spokesman for the brokerage, who declined to disclose the length of the lease. CoStar Group indicates that it’s a 10-year deal, however, that runs through January 2027.    

D.E. Shaw & Co. leases a sizeable chunk of the 1.6-million-square-foot building with 195,000 square feet on the fifth through ninth floors. The hedge fund sponsor renewed that foothold in April for an undisclosed length, as Commercial Observer previously reported.

The firm announced with Blackstone Alternative Asset Management in March 2015 that it would launch Arcesium as an independent company. Arcesium would start with 300 employees with the plan to expand by 100, according to a press release at the time.

The deal comes as landlord Edward J. Minskoff Equities proceeds with a renovation of the lobby of the property between West 45th and West 46th Streets, according to The Wall Street Journal, which first reported news of the deal. The Gensler-designed overhaul includes new lighting and will feature multiple art installations, the JLL release indicates.

Paul Glickman, Cynthia Wasserberger, Jonathan Fanuzzi and Diana Biasotti of JLL represented the landlord, while Timothy Dempsey, Roger Griswold and Munish Viralam of CBRE represented the tenant. A CBRE spokeswoman did not immediately return a request for comment.

In prepared remarks, Glickman said the building is “a premier asset in an ideal location,” noting its location on Avenue of the Americas and its proximity to Grand Central Terminal, Pennsylvania Station and the Port Authority Bus Terminal.

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



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.

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

Stat of the Week: $20.16 Per Square Foot

As the “unofficial” start to the summer season approaches, what better way to celebrate Memorial Day weekend than by heading outdoors for some fun in the sun? Since it’s not quite warm enough to head to the beach, let’s stroll through some of Manhattan’s most famous parks and enjoy the cool breeze and greenery. Everyone knows office buildings with views of the 843-acre Central Park command a premium compared to the rest of the office leasing market. Analyzing the office buildings around three other parks within Midtown and Midtown South uncover similar results, as the average asking rent of $92.16 per square foot for buildings surrounding Union Square, Madison Square and Bryant Park are $20.16 per square foot higher than the Manhattan average.

The first park on the list is Union Square Park, which is bordered by 10 office buildings totaling more than 978,000 square feet. Currently there is more than 79,000 square feet of vacant office space in this park set, for a vacancy rate of 8.1 percent. Despite a vacancy rate higher than Midtown South’s 6.1 percent vacancy, at $74.94 per square foot, asking rents in these buildings are $5.01 higher than the Midtown South average.

The second park examined is Madison Square Park, which is surrounded by 12 buildings totaling more than 6.9 million square feet. This park set is extremely tight with only 169,115 square feet of vacant space—a 2.4 percent vacancy rate—370 basis points lower than Midtown South. Asking rents in these buildings are averaging $77.86 per square foot, a $7.93 premium over the Midtown South average of $69.93 per square foot.

The last park analyzed, Bryant Park, resides within Midtown, and this park set contains 20 buildings totaling more than 9.6 million square feet. Despite having the highest vacancy of the three park sets, at 9.3 percent it is still 10 basis points lower than Midtown’s 9.4 percent vacancy. In the Bryant Park set, asking rents are $101.91 per square foot and command a $23.12 premium over the $78.79 per square foot Midtown average.

So, as you stroll through Manhattan’s parks this season, keep in mind that even though money doesn’t grow on trees, you need quite a bit to look at them from your office window.

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

UBS Renews 900K-SF Lease at 1285 Avenue of the Americas



Swiss bank UBS has renewed its roughly 900,000-square-foot space at the 1.7-million-square-foot Equitable Building at 1285 Avenue of the Americas, a building RXR Realty and real estate investor David Werner picked up today for $1.65 billion.

UBS, which occupies floors eight to 20, 37, 38 and 39 of the 42-story building, had a lease that expired in 2020, but was renewed until 2033, a source with knowledge of the deal said. Crain’s New York Business first reported the news about the lease.

CBRE‘s Robert Alexander represented UBS in the lease and RXR represented itself in-house, the source said. Mr. Alexander declined to comment, as per a CBRE spokeswoman.

RXR’s purchase of the 42-story building between West 51st and West 52nd Streets from AXA Financial and J.P. Morgan Asset Management marks one of the biggest office building sales so far this year in New York City, Crain’s noted.

“Overall, this was a very large, complicated deal where we had to restructure, extend and amend the UBS lease,” Michael Maturo, the president and the chief financial officer of RXR, told CO earlier today. “Morgan Stanley and AIG did a terrific job working through the complexities of getting comfortable with the UBS extension.”

Other major tenants in the building include law firm Paul, Weiss, Rifkind, Wharton & Garrison, in 580,651 square feet, according to CoStar Group, and advertising agency network BBDO Worldwide in 323,368 square feet.

Investment Firm Buys 13K-SF Midtown South Office Condo For $11M

Economic Growth Group, a financial services firm, has purchased the ninth-floor office condominium at 207 West 25th Street from The Nugent Organization for $10.8 million, Commercial Observer has learned.

The financial company, which manages retirement and pension funds, intends to move its offices to the 13,307-square-foot condo between Seventh and Eighth Avenues, according to the seller’s broker, Rudder Property Group.

Economic Growth Group operates the subsidiary Economic Growth Pension Services and will relocate from nearby 333 Seventh Avenue between West 28th and West 29th Streets, where the company has 10,000 square feet on the third floor.

The Nugent Organization has owned the condo for more than two decades and since 2008 rented it out to a marketing printing company NugentAlison, which recently moved to 47-50 30th Street in Long Island City, Queens in search of cheaper rent, according to Vincent Longo, a managing partner of The Nugent Organization. The rent was $27 per square foot. (The Nugent Organization and NugentAlison are different companies, but have some of the same investors.)

“The seller took advantage of the extraordinary appreciation in the value of office condominiums in the Midtown South submarket, which have doubled in the past five years,” Rudder Property Group Principal Michael Rudder said in prepared remarks. ”The purchaser recognized the benefits of office ownership, including eliminating any future rent escalations and permanently securing their office space needs.”  Mr. Rudder represented The Nugent Organization in the sale with colleague Michael Heller.

Economic Growth Group’s new digs features loft-like ceilings, windows on four sides, an open layout and exposed brick walls and steel columns. The firm is planning to renovate the condo, Mr. Rudder said.

CBC Alliance’s David Toran and Corey Abdo represented the buyer in the transaction. Mr. Toran did not return a request for comment.


D.E. Shaw renews 195K sf lease at Minskoff’s 1166 Sixth

From left: Edward Minskoff, 1166 Sixth Avenue in Midtown and David Shaw

From left: Edward Minskoff, 1166 Sixth Avenue in Midtown and David Shaw

Global investment firm D.E. Shaw Group will stay in its four-floor Sixth Avenue space.

David Shaw’s company renewed its lease for 195,000 square feet at Minskoff Equities’ 1166 Sixth Avenue in Midtown, where it occupies the fifth through ninth floors, the New York Post reported.

Asking rents at the building run from the high-$70s to the mid-$80s per square foot, depending on the floor.

CBRE’s Timothy Dempsey, Roger Griswold and Munish Viralam represented D.E. Shaw in the deal. Minksoff was repped by JLL’s Paul Glickman, Cynthia Wasserberger, Jonathan Fanuzzi and Diana Biasotti.

The building is currently undergoing a renovation by Gensler Architects, which is redesigning the lobby, the lighting scheme and the outdoor canopies. [NYP] – Ariel Stulberg