find office space

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

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/

Vornado, SL Green land private equity tenant at 280 Park

Antares Capital signs 12-year lease for 55K sf

280 Park Avenue in Midtown

280 Park Avenue in Midtown

Private equity firm Antares Capital signed a 55,000-square-foot lease at Vornado Realty Trust and SL Green Realty’s 280 Park Avenue.

The lease is for 12 years and asking rents in the building are in the $90s. Antares is moving from Fisher Brothers’  299 Park Avenue.

The firm was a subsidiary of now-defunct GE Capital until last year, when it was sold to Canada Pension Plan Investment Board as part of a $12 billion deal. CBRE’s Paul Amrich and Neil King represented Antares, while Vornado’s Andrew Ackerman and CBRE’s Peter Turchin and Sam Seiler represented the landlord.

SL Green and Vornado spent $150 million renovating the 1.2 million-square-foot property, which they bought for close to $500 million in 2011.

The building will be the new home of the Four Seasons Restaurant, which was kicked out of RFR Realty’s Seagram Building.

Last year, Singapore’s sovereign wealth fund GIC signed a 50,000-square-foot lease at the tower.  [Crain’s] — Konrad Putzier

Investment Adviser Renews Nearly 14K SF at Rudin’s 845 Third Avenue

845 Third Avenue. Photo: CoStar Group

845 Third Avenue. Photo: CoStar Group

An investment counseling firm has opted to renew its headquarters at the Rudin family’s 845 Third Avenue for another 10 years, Commercial Observer has learned.

Inverness Counsel will stay put in its 13,787 square feet at the building between East 51st and East 52nd Streets into 2026, according to a press release provided by the landlord.

The firm, which manages about $2.6 billion in assets, has been based at the property since August 2006, CoStar Group indicates.  

“Inverness Counsel has enjoyed its long-standing relationship with the property’s ownership as it established its headquarters in the space over 10 years ago,” Cushman & Wakefield’s Eric Reimer, who represented the tenant in the deal, said in prepared remarks.

Rudin was represented in-house by Thomas Keating, the head of commercial leasing for Rudin Management Company, which oversees the building. Asking rent was $59 per square foot, according to a spokeswoman for the landlord.

“We are delighted that our long-term tenant Inverness Counsel has recommitted to 845 Third Avenue for another decade,” William Rudin, the chief executive office of Rudin Management, said in a statement.

The 53-year-old building is no stranger to financial and corporate firms. Other occupants of 845 Third Avenue include investigator K2 Intelligence, financial firm Kroll Bond Rating Agency and home health provider SeniorBridge Family Companies.

 

https://commercialobserver.com/2016/10/investment-adviser-renews-nearly-14k-sf-at-rudins-845-third-avenue/

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/

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

 

 

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/

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/

FinTech Firm, Investment Bank Take Full Floors at 19 West 24th Street

19 WEST 24TH STREET.

19 WEST 24TH STREET.

Two tenants have each inked entire floors at Kaufman Organization’s 19 West 24th Street, which together account for more than 10,000 square feet of space.

Commercial Observer has learned that TransferWise, a financial services platform, has signed a five-year, 5,418-square-foot lease for the entire ninth floor at the property between Broadway and Avenue of the Americas.

The company, which allows users to transfer money abroad “without hidden fees,” will take the entire ninth floor of the 63,015-square-foot office building between Fifth Avenue and Avenue of the Americas. It plans to move into the building in the summer from coworking space at WeWork’s digs at 175 Varick Street.  

Asking rents in the building were in the $70s per square foot, according to a Kaufman spokeswoman. Colliers International’s Michael Thomas, who represented the tenant, declined to comment on the deal.

The building “continues to attract a diverse mix of high-quality tenants as the building offers updated loft-style office spaces located in one of the most sought after office destinations,” Kaufman’s Grant Greenspan, who represented the landlord with colleagues Michael Heaner and Elliot Warren, said in a statement.

In the second deal, Pursuit Advisory, an investment bank that provides services to media, technology, digital and private equity firms, has also taken a five-year, 5,418-square-foot lease for the entire eighth floor. Pursuit Advisory is also moving in during the summer from a temporary space in Lower Manhattan.

Pursuit Advisory “wanted a cool, hip area,” Arash Sadighi of TheSquareFoot, who represented the bank, told CO. “They felt that 24th Street off Madison Square Park gave them what they wanted.”

With these two leases, the 12-story building is now 85 percent occupied with only two floors remaining. Other tenants include Blue Ocean Brokerage, men’s custom clothing line Knot Standard, health technology company AiCure and a family-owned distributor of wines and spirits, Wilson Daniels Wholesale.

https://commercialobserver.com/2016/06/fintech-firm-investment-bank-take-full-floors-at-19-west-24th-street/

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.

First Commercial Bank, Consulting Company Each Sign Full-Floor Deals at 750 Third Avenue

750 THIRD AVENUE.

750 THIRD AVENUE.

After 15 years on the top floor at 750 Third Avenue, Taiwan-based First Commercial Bank has re-upped, Commercial Observer has learned, and advisory and expert services firm Ankura Consulting Group is moving onto a full floor in the Grand Central Terminal-area building.

Commercial Bank’s 11,779-square-foot space spans the entire 34th floor of the 857,354-square-foot office building between East 46th and East 47th Streets, according to information from landlord SL Green Realty Corp. The renewal lease is for 15 years, said Daniel Horowitz of Savills Studley, who represented First Commercial Bank in the deal.

“The building obviously is well-managed by SL Green and [Commercial Bank is] on the top floor of the building so they have the prestige of having a relatively modest-sized presence and maintaining an outsized commanding view of Third Avenue,” Horowitz said. Natasha Brown represented the landlord in-house in the transaction.

Commercial Bank will perform “some modest upgrades, reconfigure the space and make it productive for the ensuing years,” Horowitz added.

Meanwhile, Atlanta-based Ankura signed a new five-plus-year lease covering 11,779 for the entire 28th floor of the building, according to a release from SL Green. The building asking rents range from $69 to $72 per square foot, according to Steven Durels, the director of leasing and real property for SL Green. He noted that the company will move in later this summer after a build-out.

Don Preate of Cushman & Wakefield represented Ankura, while David Kaufman acted in-house for SL Green. A spokesman for C&W didn’t immediately respond to a request for comment.

“We are delighted to welcome Ankura to the building, and retain First Commercial Bank, Ltd., for the long-term,” Durels said in prepared remarks. He added that “these transactions are testament to the continued robust leasing activity currently be experienced in Midtown Manhattan and particularly within the Grand Central Terminal submarket.”

SL Green acquired the building in July 2004 from TIAA-CREF for $255 million, according to property records. Other tenants in the building include accounting firms Eisner and Marcum, as well as Endurance Reinsurance and FTI Consulting.

https://commercialobserver.com/2016/06/first-commercial-bank-consulting-company-each-sign-full-floor-deals-at-750-third-avenue/

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.

https://commercialobserver.com/2016/05/stat-of-the-week-20-16-per-square-foot/

Visa swipes in at 277 Park Avenue

Credit card processor inks 25K sf lease at Stahl’s Plaza District tower

277 Park Avenue

277 Park Avenue

If the Stahl Organization were looking for a slogan for its 2.1 million-square-foot office tower at 277 Park Avenue, it could try, “Everywhere you want to be.”

Financial services firm Visa, best known for its branded debit and credit cards, inked a lease for the full, 25,000 square-foot 50th floor near the top of Stahl’s Plaza District tower, sources told The Real Deal.

The asking rent for the 10-year deal was $125 per square foot.

A team at Cushman & Wakefield including Peter Occhi, Mark Boisi and James Frederick represented the landlord. David Hollander at CBRE negotiated the deal on behalf of Visa.

The brokers declined to comment.

The space, which boasts dramatic double-height ceilings, became available for the first time in half a century two years ago as one half of a 50,000 square-foot penthouse on the 49th and 50th floors. That was when the Continental Grain Company relocated to the General Motors Building at 767 Fifth Avenue.

The 49th Floor remains on the market, according to CoStar.

Back in 2014, Visa dropped the “It’s” from the company’s popular slogan, abbreviating it to simply: “Everywhere you want to be.”

The company is relocating from the William Kaufman Organization’s 777 Third Avenue, where it currently occupies 10,810 square feet on part of the building’s 23rd Floor. That space is now available for sublease, with a term running through 2023.

277 Park is also home to Stahl’s headquarters.

Other tenants in the building include JP Morgan Chase, which has 571,000 square feet in the tower, and Sumitomo Mitsui Bank Corporation, a subsidiary of Japan’s fourth-largest bank.

https://therealdeal.com/2016/06/02/visa-swipes-in-at-277-park-avenue/

Goldman Sachs’ Real Estate Finance Co-Head Jumps Ship to Start B-Piece Fund

JONATHAN STRAIN (PHOTO: LINKED IN).

JONATHAN STRAIN (PHOTO: LINKED IN).

Jonathan Strain, the co-head of U.S. Real Estate Finance at Goldman Sachs has left the company in order to start his own fund, Commercial Observer can first report.

The new fund will focus on purchasing B-pieces of commercial mortgage-backed securities, according to two people familiar with the move.

Mr. Strain co-led the U.S. Real Estate Finance group along with Ted Borter. He joined Goldman Sachs in 2014 after heading up JP Morgan Chase’s CMBS Capital Markets group for seven years. Prior to that, Mr. Strain held positions at Dillon Read Capital Management, UBS and Morgan Stanley.

Mr. Strain’s last day at Goldman was Friday of last week, according to one of the sources.

A spokesman for Goldman Sachs declined to comment. Mr. Strain could not immediately be reached for comment.

https://commercialobserver.com/2016/05/goldman-sachs-real-estate-finance-co-head-jumps-ship-to-start-b-piece-fund/

High-frequency trading firm takes 69K sf at 4 WTC

Hudson River Trading leaving current FiDi office at 32 Old Slip

4 World Trade Center in the Financial District (credit: Silverstein Properties)

4 World Trade Center in the Financial District (credit: Silverstein Properties)

High-frequency trading firm Hudson River Trading is taking 69,000 square feet of office space at Silverstein Properties 4 World Trade Center in the Financial District.

The company will occupy the 57th and 58th floors at the 72-story, 2.3 million-square-foot office tower starting next year.

Hudson River Trading’s space comes with a 5,000-square-foot outdoor terrace located on a setback on 4 WTC’s 57th floor and invisible from the street, according to the New York Post. The terms of the deal and asking rents at the building were not disclosed.

The firm, which uses automated trading algorithms to carry out its high-frequency trading operations, will be leaving its current office at 32 Old Slip, also in the Financial District.

Hudson River Trading will join the likes of software company MediaMath, which has 106,000 square feet at 4 World Trade Center, and sports cable network SNY, which occupies 83,000 square feet there.

The Port Authority of New York and New Jersey anchors the property, which houses the agency’s 650,000-square-foot headquarters.

Swiss insurance giant Zurich’s U.S. subsidiary is reportedly in negotiations to take around 70,000 square feet at 4 World Trade Center, as Crain’s reported earlier this month. [NYP] – Rey Mashayekhi

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

THE EQUITABLE BUILDING AT 1285 AVENUE OF THE AMERICAS.

THE EQUITABLE BUILDING 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.

https://commercialobserver.com/2016/05/ubs-renews-900k-sf-lease-at-1285-avenue-of-the-americas/