nyc commercial real estate

Large UAE Bank Moving NYC Office Within FiDi

7 STATE STREET. PHOTO: COSTAR GROUP.

7 STATE STREET. PHOTO: COSTAR GROUP.

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].”

https://commercialobserver.com/2017/09/large-uae-bank-moving-nyc-office-within-fidi/

BY LIAM LA GUERRE SEPTEMBER 28, 2017 10:11 AM

Fintech giant Finastra expanding into 285 Madison penthouse

Finestra.PNG

RFR Realty LLC  announced that global financial technology provider Finastra – created when Misys and D+H joined forces in June this year – has expanded into the 11,275 s/f  full-floor penthouse at 285 Madison Avenue.

Finastra already occupies 23,500 s/f on the fourth floor of the newly repositioned office tower near Grand Central Terminal and Bryant Park.

Finastra is the third largest Fintech (financial technology) firm in the world. It has over 9,000 customers across 130 countries, including 48 of the top 50 banks globally.  The expanded office space will bring all New York-based employees under one roof.

The landlord was represented by Alexander Chudnoff, Mitchell Konsker, Dan Turkewitz and Diana Biasotti of JLL, as well as RFR’s Senior Vice President and Director of Leasing AJ Camhi. Jon Sarkisian, Neil King and Emily Jones of CBRE represented the tenant in the lease transaction.

“We are delighted that this exciting global financial technology firm, Finastra, has chosen to expand its presence within 285 Madison,” said Camhi. “The leasing velocity we’ve seen here since we completely reimagined this well-located office tower speaks volumes about tenants’ desire to match a sought-after location with an array of exceptional on-site amenities.”

The Finastra expansion comes on the heels of Tommy Hilfiger (PVH Corp.) signing a 200,000 s/f lease to relocate its U.S. corporate headquarters to 285 Madison Avenue, joining  global firms including Brighthouse Financial, Pepsico, Bessemer Venture Partners, StriVectin Operating Company and General Electric Company.

In addition to the flurry of new office leasing at the building, recent retail deals at 285 Madison Avenue will bolster the building’s transformation, adding additional amenities for tenants and the surrounding neighborhood.

The Benjamin Group—the restaurant operator behind the Benjamin Steakhouse and Sea Fire Grill concepts—signed a 16-year lease for 9,020 s/f for a Benjamin Steakhouse. Popular Community Bank, part of the international financial services group Banco Popular, signed a lease for the 3,553 s/f corner space. London-based coffee purveyor Taylor Street Baristas occupies 1,040 s/f of space adjacent to the restaurant, as well as a portion of the mezzanine.

The building was acquired by RFR vacant in 2012 and has been transformed through a $65 million  renovation and design upgrade. This includes a landscaped roof terrace with lounge seating and an adjacent indoor multipurpose collaboration space with tables and selected art. The building lobby also has a rotating contemporary art program, currently featuring works by Peter Dayton, Enoc Perez, and Mike Bidlo.

Other tenant amenities include a private lounge, event space, fitness center complete with showers and men’s and ladies’ locker rooms, and a bike storage area.

BY REW 

SEPTEMBER 19, 2017

http://rew-online.com/2017/09/19/fintech-giant-finastra-expanding-into-285-madison-penthouse/

Law Firm, Investment Company Ink 48K SF at 437 Madison Avenue

437 MADISON AVENUE.

437 MADISON AVENUE.

Two companies located at William Kaufman Organization’s 437 Madison Avenue have signed deals totaling 47,821 square feet to remain in the building, the landlord announced in a release today.

In the larger transaction, law firm Montgomery McCracken Walker & Rhoads inked a 28,297-square-foot direct lease, after it was a subtenant in the building for Nixon Peabody starting in 2011.

Montgomery McCracken will continue to occupy a portion of the 23rd floor and the entire 24th floor of the 850,000-square-foot office tower between East 49th and East 50th Streets. The asking rent in the 10-year deal was $90 per square foot.

“The decision to remain at 437 Madison made sense to us for our attorneys and clients during a critical time for growth and we’re excited to expand our presence in the building,” Lee Unterman, a managing partner of Montgomery McCracken’s New York office, said in prepared remarks.  

Michael Lenchner of Sage Realty Corporation, the leasing and management arm of William Kaufman Organization, negotiated the deal.

In the second transaction, investment management company Prelude Capital has signed a six-year early renewal and is expanding its offices in the building. It will occupy a total of 19,524 square feet on a portion of the 33rd and 34th floors. Previously, Prelude occupied just 7,000 square feet on the 33rd floor. The asking rent was $105 per square foot. Lenchner negotiated the deal. 

“The expansion of our 437 Madison Avenue offices represents a commitment to the highest quality infrastructure in an ideal location with an established long-term partner,” Cisco del Valle, a co-founder of Prelude Capital, said in the release.

William Kaufman Organization recently completed a top down, $60 million renovation of the 40-story building, which includes a new 8,870-square-foot lounge on the 15th floor, a redesigned lobby and arcade, new plaza, renovated elevators and upgraded the mechanical systems.

“These transactions are a clear indicator of the ongoing resurgence of the Midtown East market and the success of our multi-million dollar capital improvement program at 437 Madison Avenue, an iconic property that has been reimagined for the 21st century,” Lenchner said in a statement.

https://commercialobserver.com/2016/12/law-firm-investment-company-ink-48k-sf-at-437-madison-avenue/

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/

Thor Lures Personal Finance Company From Third Avenue

597 FIFTH AVENUE. PHOTO: COSTAR GROUP

597 FIFTH AVENUE. PHOTO: COSTAR GROUP

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.  

https://commercialobserver.com/2016/10/thor-lures-personal-finance-company-across-fifth-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/

Global Securities Company Grabs 29K SF at Charles S. Cohen’s 623 Fifth Avenue

A technology-focused trading firm specializing in global securities has signed a two-floor lease to relocate its corporate headquarters to Fifth Avenue, Commercial Observer has learned.

Arxis Capital will occupy 29,000 square feet at the 400,000-square-foot 623 Fifth Avenue, according to a press release provided by landlord Charles S. Cohen

623 Fifth Avenue. Photo: CoStar Group. 

623 Fifth Avenue.
Photo: CoStar Group. 

“We’re delighted that one of the highly successful, new breed of technology-driven financial firms, has chosen 623 Fifth Avenue for their home,” Cohen, the head of Cohen Brothers Realty, said in prepared remarks.

Asking rent in the transaction was $95 per square foot, the release indicates. A source familiar with the deal said the lease is for five years.

Arxis, which was founded in 2014 by former Bank of America Merrill Lynch executives, is based at 527 Madison Avenue between East 53rd and East 54th Streets. The move will be a major upgrade for the company, as it leases 7,500 square feet at its current digs, a source said.

Silvio Petriello, Alexander Golod and Ben Friedland of CBRE represented the tenant, while Marc Horowitz of Cohen Brothers Realty along with a team from Colliers International. The tenant’s brokers declined to comment via a spokeswoman.

Formerly dubbed the Swiss Bank Tower, the building is also home to the flagship Saks Fifth Avenue store. The retailer leases nearly 80,000 square feet at the base of the 36-story structure, according to CoStar Group.  

Commercial Observer, Terence Cullen, Sept. 9, 2016, 11:45 a.m.

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

 

 

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/

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/