manhattan office space

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

Wealth Management Firm for Blackstone Co-Founder Moves Within Midtown



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.


Large UAE Bank Moving NYC Office Within FiDi



Dubai-based financial institution Mashreqbank signed a 10-year lease for 8,727 square feet at 17 State Street, according to landlord RFR Realty.

The tenant will take half of the 22nd floor in the 42-story building at the intersection of State and Pearl Streets across from The Battery. The asking rent in the deal was $68 per square foot. The bank is moving from its current address at 50 Broadway near Exchange Place. It has 5,919 square feet there on the 15th floor, according to CoStar Group.

RFR’s AJ Camhi and Ryan Silverman handled the deal alongside a JLL team of John Wheeler and Clayton KlineCushman & Wakefield’s Dan Organ brokered the transaction for Mashreqbank, which has 12 offices overseas in Europe, Asia and Africa. A spokesman for C&W declined to respond to a request for comment.

The deal was part of a few new transactions signed at the 570,696-square-foot office tower.

London-based M Three Consulting signed a 4,812-square-foot deal at the building, and it is moving from 14 Wall Street between Broadway and Nassau Street. Also, law firm Torgan, Cooper & Aaron inked a 6,443-square-foot renewal. Rob Lowe and Evan Algier of C&W handled the deal for the law firm. And financial planner Granger Management Holdings renewed its 3,263-square-foot space.

“We continue to attract and retain prestigious global companies who have chosen 17 State Street as their home,” Camhi said in a prepared statement. “Each of the executives and employees at these firms will benefit from its close proximity to transportation… as well as the stunning views of New York Harbor, the Statue of Liberty and [The Battery].”


Thor Lures Personal Finance Company From Third Avenue



Thor Equities has leased out a full floor of its 597 Fifth Avenue to a personal finance firm, Commercial Observer has learned.

ValuePenguin will occupy the whole fifth floor, or 6,370 square feet, of the 81,000-square-foot building between East 48th and East 49th Streets, according to a press release from Thor.

The company signed a 10-year deal at the property, also known as the Charles Scribner’s Sons Building, and is moving from a smaller space at 600 Third Avenue, according to Thor.

Asking rent was in the deal was $65 per square foot, a source familiar with the deal said.

Douglas Elliman’s Anita Grossberg represented ValuePenguin, while Thor’s Adam Rappaport represented the landlord in-house with Christel Engel and Robert Gallucci of Colliers International. Grossberg did not immediately return a request for comment.

“The quality of the existing building meant that we wouldn’t be required to do significant imagining on our own about what to do with the office,” Jonathan Wu, the chief executive officer of ValuePenguin, said in an email. “Instead we could simply extend what was already there and focus on our business.”

Thor seems to be leasing out full floors of the 1913 building, originally built to house Scribner’s Bookstore. In April 2015, CO reported that Bateleur Capital signed a deal for the whole 6,364-square-foot ninth floor, and GCT Constructors inked a lease for the entire 6,364-square-foot fourth level.     

“597 Fifth Avenue is ideally situated on Fifth Avenue between Bryant Park and Central Park, with Grand Central Terminal, [Pennsylvania] Station and the Port Authority Bus Terminal all in close proximity,” Melissa Gliatta, Thor’s chief operating officer, said in prepared remarks.


BlackRock targets Hudson Yards for new HQ

Asset management giant is looking for as much as 1M sf of office space

A rendering of the Spiral and 50 Hudson Yards (Inset: Larry Fink)

A rendering of the Spiral and 50 Hudson Yards (Inset: Larry Fink)

BlackRock has set its sights on Hudson Yards for a new headquarters as big as 1 million square feet.

The company currently rents around 700,000 square feet in two buildings – Fisher Brothers and Soho China’s 55 East 52nd Street and Rudin Management’s 40 East 52nd Street. The lease at 55 East 52nd is due to expire in 2023. In February, The Real Deal reported BlackRock had tapped a JLL team led by Peter Riguardi to find a new, larger office space.

By July, the company had shortlisted three possible new locations: 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 is also still holding onto the option of staying at its current location.

But, according to Crain’s, BlackRock is now considering two proposed towers in the Hudson Yards neighborhood. One is 50 Hudson Yards, developed by Related and Oxford, which is located on West 33rd Street and 10th Avenue. The other is Tishman Speyer’s building, the Spiral, which is planned for one block north of 50 Hudson Yards and will span 2.85 million square feet.

Norway’s Largest Lender Relocating North American HQ to 30 Hudson Yards

Norwegian financial services giant DNB Bank has signed a 44,517-square-foot deal at the future skyscraper at 30 Hudson Yards for its North American headquarters, landlord Related Companies announced today.

A rendering of 30 Hudson Yards. : Related Companies. 

A rendering of 30 Hudson Yards. : Related Companies. 

The firm will occupy the entire 68th floor of the planned 90-story tower, which Related and Oxford Properties Group hope to complete in early 2019. Asking rents in the building are north of $100 per square foot, according a spokeswoman for Related.

DNB expects to relocate from the MetLife Building at 200 Park Avenue South adjacent to Grand Central Terminal. The lease will run for 15 to 20 years, pending certain “conditions,” Bloomberg News reported, without elaborating. 

“After more than 40 years in traditional Midtown Manhattan, we are very excited to be moving to the West Side and joining Related at 30 Hudson Yards, in what will be a wonderful, new, internationally significant building and a truly vibrant New York neighborhood,” Giacomo Landi, an executive vice president of DNB, said in prepared remarks. “We fully expect that establishing our new office space in Hudson Yards will help us attract and retain key talent.”

The move to Hudson Yards is part of DNB’s plans to modernize all of its office space worldwide, a process that began in 2012 with its headquarters in Oslo. There DNB relocated 4,000 people from more than 10 locations to one modern office complex. DNB has also moved its outposts in London, Singapore and Stockholm in recent years.

Don Preate and Frank Coco of Cushman & Wakefield represented DNB in the transaction, while Stephen Winter of Related represented the landlords. Preate and Coco did not immediately respond to a request for comment via a spokeswoman.

“We particularly appreciate the focus that DNB places on environmental stewardship and employee wellness, both areas we have invested in heavily,” Jay Cross, the president Related Hudson Yards, said in a statement. “DNB will complement our world-class roster of tenants.”

The 1,296-foot tall 30 Hudson Yards has already attracted major firms including Wells Fargo Securities, Time Warner and investment firm Kohlberg, Kravis & Roberts.

Commercial Observer, Liam La Guerre, Sept. 22, 2016, 3 p.m.

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.

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.

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

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.

Division of Wells Fargo Re-Ups Its 103K SF at SL Green’s 100 Park Avenue



Wells Fargo Capital Finance has renewed a lease for its three floors of office space at SL Green Realty Corp.'s 100 Park Avenue.

The real estate investment trust announced the extension in its report on 2016’s first quarter, during which the landlord completed roughly 850,000 square feet of leases in Manhattan. That was carried in part by Wells Fargo’s 103,000-square-foot renewal for another five years and seven months.

Asking rent in the deal was not immediately clear, and nor was whether brokers were involved in the deal.

The asset-based lending wing of the banking giant first signed a 57,000-square-foot lease at the 887,489-square-foot property between East 40th and East 41st Streets about six years ago, according to CoStar Group.

Wells Fargo moved into the building in June 2009. The lender expanded by 12,000 square feet in December 2010, CoStar indicates. By February 2011, it tacked on an additional 34,000 square feet for its current foothold.

SL Green announced the renewal as part of a slew of transactions it has already completed in 2016. Executives said on an earnings call today that the leasing target for this year is 2 million square feet, with more than one-third of that already completed. There are another 1.3 million square feet of deals in talks right now, of which about 650,000 square feet are new, said SL Green Chief Executive Officer Marc Holliday, who recently clocked in at three on this year’s Power 100.

The first-quarter leasing would thus cover a third of what SL Green hopes to accomplish this year. Other heavyweight deals between January and March this year include Omnicom Group’s 167,000-square-foot renewal at 220 East 42nd Street and Credit Suisse’s two-floor re-signing of 186,396 square feet at 11 Madison Avenue, as Commercial Observer previously reported.

“The stars aligned and we ended up converting a lot of those transactions further,” Steven Durels, SL Green’s leasing chief, said of the leases already signed this year.  

UBS Does About-Face and Leases 120K SF at Park Avenue Building

299 Park Avenue (Photo: CoStar Group).

299 Park Avenue (Photo: CoStar Group).

Swiss bank UBS AG, which in early 2013 had plans to leave 800,000 square feet, or 30 floors, at Fisher Brothers299 Park Avenue, has leased 120,000 square feet in the Midtown tower, Winston Fisher, a partner in the firm, told Commercial Observer.

“This [deal involves] taking a new 120,000 square feet that we had never anticipated,” Mr. Fisher said of last week’s lease signing. “We’re delighted to have [UBS].”

The Real Deal broke the news that UBS signed a 13-year deal with a five-year extension for floors eight, nine, 24 and 25 in the 42-story, 1.2-million-square foot building between East 48th and East 49th Streets. Asking rents in the building, with floor plates of about 25,000 square feet, range from $90 to $135 per square foot, a source with knowledge of the deal told CO.

Fisher Brothers faced having to lease 30 empty floors in the 42-story tower, dubbed the UBS Building, following Switzerland’s largest bank’s decision to cut jobs and consolidate, Mr. Fisher said. Now, two years before the company’s lease expiration, Fisher Brothers has 27 of those floors spoken for. Capital One took 250,000 square feet of UBS’ space, GE Capital took 115,000 square feet and the Carlyle Group leased 60,000. UBS has been a tenant in the building since 1981.

Marc Packman represented Fisher Brothers in-house. Robert Alexander, Doug Lehman and Patrick Murphy of CBRE represented the tenant and they declined to comment via a spokeswoman.

Built and managed by Fisher Brothers and designed by Emery Roth & Sons, the tower opened in 1967. Alaska Permanent Fund Corporation has a 49.5 percent interest in the property, according to CoStar Group.

Finance Firm Taking Full Floor at 5 Bryant Park



XP Securities, a wealth management firm, has inked a deal for pre-built space at Equity Office’s 5 Bryant Park, Commercial Observer has learned.

The Midtown-based company will take the entire 29th floor, or 7,558 square feet, at the 640,000-square-foot building between West 40th and West 41st Streets, according to a press release from the landlord. The lease is for 10 years, and the asking rent in the deal was in the low-$90s per square foot, according to an Equity Office spokeswoman.

XP Securities will move into the property this May from its current offices at 780 Third Avenue between East 48th and East 49th Streets, according to the Equity Office release. The size of the company’s current office was not immediately clear.  

“Like any fast-growing company, physical space is always a challenge,” Bernardo Amaral, the chief executive officer of XP Securities, said in prepared remarks. “In 5 Bryant Park, we found a wide open space, remodeled and with a privileged location.”

Brian Waterman, Brent Ozarowski, Josh Gosin and Alex Radmin of Newmark Grubb Knight Frank represented the landlord along with Scott Silverstein and Zachary Freeman of Equity Office in-house. Thomas Murray of Lincoln Property Company represented XP Securities. 

Mr. Murray said XP Securities would be slightly expanding in the move, and that it looked all over the city before deciding on 5 Bryant Park.

Equity Office has revamped parts of the 34-story building, including the 27,391-square-foot ninth floor, as CO reported last month. That level includes concrete floors inscribed with quotes from Woody Allen and the Beastie Boys, as well as new full-pane windows. 

Hedge Fund Hollis Park Partners Finds New Digs at 579 Fifth Avenue

Hollis Park Partners is moving to 7,620 square feet at 579 Fifth Avenue, according to JLL, which represented the landlord, Stawski Partners, in the deal.

The hedge fund, which manages a structured products fund, took the entire 15th floor at the Fifth Avenue building at East 47th Street through a 10-year lease.The asking rent was $75 per square foot, JLL indicated, and the deal includes a private terrace setback.

Hollis Park Partners will be relocating from 1540 Broadway between West 45th and West 46th Streets.

“Hollis Park Partners sought a new, modern office at a top-notch office property that was appropriate for its growing and expanding fund,” said JLL’s Paul Glickman, who represented Stawski Partners in the deal along with Diana Biasotti and Benjamin Bass.“Stawski Partners recently completed a complete modernization and redesign of 579 Fifth Avenue. The building is an ideal location for boutique businesses looking for a full-floor presence with the prominence of a Fifth Avenue address in Midtown.”

CBRE’s Keith Caggiano and Roshan Shah represented the tenant. The CBRE brokers declined to comment via a spokeswoman.

After the hedge fund moves in in May or June 2016, less than half of the 150,000-square-foot office building will be available for lease, according to JLL. Other tenants include Bank Leumi and Roberto Coin’s global headquarters.

“579 Fifth Avenue was formerly leased by several small jewelry offices,” Ms. Biasott said in a statement. “When the industry downsized and relocated off the avenue, ownership seized the opportunity to reposition and renovate the building to accommodate boutique office users who want a full-floor presence on Fifth Avenue, such as Hollis Park.”