N.Y. Deal Sheet: IBM Leases 328K SF At One Madison
Tech multinational IBM has signed New York City's biggest office lease of 2022 so far, establishing the Flatiron district as its new Big Apple hub.
IBM signed a 328K SF lease with SL Green for a space in the landlord’s One Madison building, located one block from Madison Square Park in Midtown South, the landlord announced Tuesday. The 16-year lease will give the tech company portions of the second and seventh floors, as well as the entirety of the eighth, ninth and 10th floors for 16 years.
SL Green also recently announced a 20-year, 56K SF lease with Chelsea Piers Fitness at the One Madison office tower, which is scheduled for completion in November 2023. SL Green is the lead developer on the project, while Hines and the National Pension Service of Korea are joint venture partners on the project, which is being financed by a $1.25B construction loan.
Jones Lang LaSalle’s Paul Glickman, Alex Chudnoff, Diana Biasotti and Ben Bass provided representation for the landlord in the deal, for which asking rent was not disclosed. Cushman & Wakefield’s Patrick Murphy, Josh Kuriloff and Winston Schromm represented IBM.
TOP LEASES
SL Green also scored two new tenants at the Lipstick Building on 855 Third Ave., Commercial Observer reports. Investment bank EC Mergers & Acquisitions signed a 10-year lease for 28K SF and Aurora Health Network took a 14K SF space on the 29th floor. Cushman & Wakefield’s Joseph Grotto represented EC Mergers, Newmark’s Harry Singer and John Climi represented Aurora, and Brian Waterman, Scott Klau, Eric Harris, Cole Gendels and Zach Weil of Newmark represented SL Green in the two leases.
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Tishman Speyer has signed real estate and construction firm Suffolk to a 24K SF office lease at Rockefeller Center. The lease, for space at 50 Rockefeller Plaza, increases Suffolk’s NYC presence by 60%, according to a release. The firm expects to have 160 employees in the space when it moves its current office from 1 Penn Plaza. CBRE’s Paul Myers, Silvio Petriello, Evan Fiddle and Rob Hill represented Suffolk in the deal.
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The Helmsley Building at 230 Park Ave. has a new tenant, Commercial Observer reported. Landlord RXR signed marketing and communications firm the Bliss Group, which will take 26K SF over 10 years. The Bliss Group, which is relocating from its longtime Bryant Park space, will also get a private entrance lobby on the building’s Vanderbilt Avenue side. Asking rents for the Midtown East building were between $70 and $100 per SF. Transwestern Real Estate Services represented Bliss, with help from Jason Burch, Rory Murphy, Patrick Heeg and Chase Gordon. Brian Waterman, Scott Klau, Erik Harris, Zach Weil and Cole Gendels represented RXR, which also had in-house representation from William Elder and Andrew Ackerman.
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Men’s health company Roman has agreed to lease 24K SF in Queens from Atlas Capital Group, Partners Group and Invesco at 30-30 47th Ave. in Long Island City, Crain’s New York Business reports. Brian Waterman, Howard Kessler, Jordan Gosin and Alex Rosenblum of Newmark represented the landlord in the transaction.
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The International Gemological Institute, the world’s largest independent lab for testing and grading fine jewelry and gemstones, signed a lease with the Moinian Group for 24K SF at 545 Fifth Ave., the landlord announced. IGI will take the entire 12th floor and part of the 11th floor starting at the end of 2022, once the landlord finishes the build-out. The Moinian Group was represented by Cushman & Wakefield’s Mitchel Arkin, Omar Sozkesen, Peter Kerans and Joseph Simon, in addition to DHC’s James Cassidy. IGI had representation by Savills’ Jarod Stern, Brad Wolk and Meghan Marchini.
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The New York City Housing Authority has signed Associated Supermarkets for almost 21K SF of retail space in a 30-year lease at the Williamsburg Houses, The Real Deal reports. The supermarket group will have its storefront in the building’s ground-level space, while the lower-level space will be used for storage. NYCHA will collaborate with private developer MDG Design + Construction for renovations as it prepares the space. Booth Capital’s Greg Parassio and Brian Doyle represented both the tenant and the landlord in the deal.
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Two new tenants have agreed to take space at Kerway Realty LLC's NoHo property at 65 Bleecker St. Post-production house Assembly Group LLC has leased 19K SF for its second Manhattan office, while women’s apparel and accessories company Khaite has agreed to take 9K SF for offices and showrooms. Assembly Group’s agreement covers the entire 10th and 11th floors of the 13th-story building, which was constructed in 1897. Alan Bonett and Brad Cohen of Adams & Co represented Kerway; Adams & Co. also represented Assembly in the deal. Cushman & Wakefield’s Amy Zhen represented Khaite. Asking rents at the building are $78 per SF.
Brookfield Properties has closed on the sale of a 49% stake in One Manhattan West, its trophy office skyscraper, it announced Monday. Brookfield and its joint venture partner, the Qatar Investment Authority, sold the minority stake in the building to Blackstone, which valued the 2.1M SF, 67-story tower at $2.85B, making it one of the largest capital transactions in the city over the last few years. The building opened in 2019 and is leased to EY, Accenture, McKool Smith and Skadden Arps.
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Midwood Investment & Development is under contract to buy the Candela Tower, on 56 Seventh Ave., for $100M from owner BlackRock, The Real Deal reports. The Candela Tower, named for its architect Rosario Candela, was built in 1931 and has 7K of retail space leased to tenants including Elm Health and Birch Coffee. More than half of the mixed-use West Village building’s apartments are rent-stabilized. BlackRock, which acquired the building in 2008, is expected to close the deal with Midwood in May this year.
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A nearly 16K SF mixed-use building at 8 East 41st St., close to Bryant Park, has sold for $12.4M, broker B6 Real Estate Advisors announced. Meir Levy sold the building to Piyush Golia, the CEO of Perfume Worldwide Inc., who will be an owner-user, according to a press release. Brock Emmetsberger, Zachary Redding and Marshall Dickson of B6 and Wings Group’s Nancy Cibrano represented Levy, while Golia was represented by Corcoran’s Christover Cavorti. The property has five floors of office space, two floors of salon space and ground-floor retail, with nearly 12K SF of air rights.
TOP FINANCING DEALS
Extell Development has secured a $325M loan from Guggenheim Investments, The Real Deal reports, to refinance the 37-floor Hard Rock-branded hotel in Times Square. Extell completed construction on the property last year and expects to open it next month at 159 West 48th St. The $325M from Guggenheim replaces $225M issued by Bank of America in 2020 and includes a $100M gap loan.
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Developer Rockrose landed a $210M loan to refinance a luxury apartment building in Long Island City from MetLife, according to a release. Rockrose’s 47-05 Center Blvd. property, a 396-unit building that reaches 31 stories, was built in 2007. Avison Young secured the financing, led by Andy Singer and Kathleen McSharry.
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Ladder Capital and Heitman will lend KPG Funds $64M to refinance a renovated five-story office building in SoHo, Commercial Observer reports. KPG acquired the 446 Broadway property in 2018 and has invested approximately $10M in renovations. The deal was arranged by Newmark’s Dustin Stolly, Jordan Roeschlaub, Nick Scribani, Chris Kramer, Dan Morin and Andrew Harwood.
