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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/

CRE lender takes 20K sf at Hell’s Kitchen office conversion

787 11th Avenue

787 11th Avenue

Real estate lender Dwight Capital inked a 20,000-square-foot lease at Georgetown Company’s office development 787 11th Avenue.

Georgetown landed a $349.5 million construction loan from the Blackstone Group last October to fund the conversion of the former Ford Motor Company industrial building.

Savills Studley represented Dwight while CBRE represented the landlord.

Led by Adam and Josh Sasouness, Dwight claims it was the second-largest multifamily HUD lender in FY 2016 in terms of both transactions and dollar amount, with $902 million in commitments.

Last year, Bill Ackman’s Pershing Square Capital Management inked a 67,000-square-foot lease at the Hell’s Kitchen building, which will reportedly feature a rooftop tennis court and an office penthouse. [NYP] — Konrad Putzier

https://therealdeal.com/2017/11/15/cre-lender-takes-20k-sf-at-hells-kitchen-office-conversion/

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

The Beekman Group Grows With Move to Nearly 8K SF at 530 Fifth Avenue

530 FIFTH AVENUE. PHOTO: RXR REALTY

530 FIFTH AVENUE. PHOTO: RXR REALTY

The Beekman Group, a private equity firm based in New York City, is moving from just under 5,000 square feet at 489 Fifth Avenue to 7,803 square feet in the nearby 530 Fifth Avenue between West 44th and West 45th Streets, Commercial Observer has learned.

Cushman & Wakefield’s Douglas Dolgoff told CO that The Beekman Group, founded in 2004, outgrew its space and rather than take two floors at 489 Fifth Avenue, it opted for a full tower floor (23) at the 26-story, 536,135-square-foot 530 Fifth Avenue. The building’s office portion is owned by RXR Realty and a partnership of Thor Equities and General Growth Properties owns the retail space.

“The main driver was trying to keep the location as close to the old location,” Dolgoff said. “We had a tight set of parameters for where they wanted to end up.”

Beekman liked that RXR agreed to deliver a turnkey installation so “they didn’t have to come out of pocket for construction costs,” Dolgoff said. The value of that construction, he estimated, is about $130 or $140 per square foot.

The lease is for eight years with an asking rent of $85 per square foot, an RXR spokeswoman indicated. Beekman will move in upon completion of the construction, she added.

Avison Young’s John RyanAnthony LoPresti and Michael Leff represented the landlord along with Dan Birney and Alexandra Budd of RXR. An Avison Young spokesman didn’t respond with a comment.

Tenants include movie and television show producer Lionsgate in 34,300 square feet, as CO previously reported, and financial firm Ameriprise Financial in about 21,000 square feet.

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

TradingScreen takes 20K sf at 1 Penn Plaza

Financial tech provider signed 10-year lease for office at Vornado building

One Penn Plaza

One Penn Plaza

Financial technology provider TradingScreen signed a 10-year lease for nearly 20,000 square feet at Vornado Realty Trust’s One Penn Plaza.

The deal will see the company taking 19,944 square feet on the 49th floor of the 2.6 million-square-foot building, Commercial Observer reported. Asking rents in the deal were not made available. However, in October, Fuse Media took 27,000 square feet at the building, and asking rents in that 10-year deal were between $67 and $72 per square foot.

TradingScreen currently rents space at SL Green Realty’s  215 Park Avenue South, according to the publication.

David Dusek and Paul Ferraro of JLL represented TradingScreen. Vornado was represented in-house by Craig Panzirer and Jared Silverman.

One Penn Plaza was left with a 150,00-square foot vacancy when the U.S. Customs and Border Protection agency left the building for One World Trade Center, and Vornado has been slowing working to fill the space.

The company is planning a massive overhaul of its Penn Plaza portfolio, and intends to combine One and Two Penn Plaza office buildings into a 4 million-square-foot complex.

“The goal here is to achieve market rents as much as 50 percent higher as market rents,” Vornado CEO Steven Roth said of the plan on a company earnings call in February. [CO] — Miriam Hall

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/

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/

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/

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/

1/0 Capital Takes Squarespace Space at 459 Bway

459 BROADWAY (PHOTO: COSTAR GROUP).

459 BROADWAY (PHOTO: COSTAR GROUP).

1/0 Capital, an investment firm in the consumer credit and technology sector space, has found new digs in a Chetrit Group building in Soho, Commercial Observer has learned.

Website builder Squarespace has subleased 1/10 Capital 12,500 square feet at 459 Broadway, spanning the fourth and fifth floors at the property between Grand and Howard Streets, also known as The Devlin Building, according to Bertram Rosenblatt of Vicus Partners, who represented 1/10 Capital along with colleague Roy Abraham.

1/0 Capital’s deal is for four years, which is when Squarespace’s 10-year lease expires, Mr. Rosenblatt said, and the asking rent was $72 per square foot.

After sealing the deal at the end of last month, 1/0 immediately moved in, consolidating from roughly 8,000 square feet at 625 Broadway, 3,000 square feet at 32 East 57th Street and 1,500 square feet at 450 Park Avenue, according to Mr. Rosenblatt.

“It’s just really about putting everybody in one place, with all of the brands under one roof,” Mr. Rosenblatt said. He added that the new offices were great because they’re “flooded with light,” 1/0 Capital has rooftop access, the building is in “the right place” and it’s convenient for the founder and his wife, who live nearby.

Paul Myers and Rocco Laginestra of CBRE represented Squarespace in the deal. The brokers declined to comment via a spokeswoman.

Yoga Works is in 6,500 square feet each on the second and third floors, according to CoStar Group, and Gem Realty is in 500 square feet on the ground floor.

https://commercialobserver.com/2016/05/10-capital-takes-squarespace-space-at-459-bway/