Ropes & Gray Relocating To RXR Tower In Deal That Could Grow To 535K SF
Ropes & Gray is relocating its New York City offices in an expansion that could give it as much as 535K SF of office space.
The Boston-based firm plans to relocate in 2028 to RXR Realty's 1285 Sixth Ave., leaving its current office in nearby 1211 Sixth Ave., where it leases 300K SF.
The 20-year lease includes expansion options, which provide the firm with room to spread to more than 500K SF at the 1.8M SF tower, according to the law firm, one of the 10 biggest in the U.S. by revenue.
Crain’s New York Business first reported the deal, citing anonymous sources who said the firm signed a lease for 430K SF.
Ropes & Gray said the lease is part of its goals for “substantial growth” in New York. The firm has more than 500 lawyers in the city and over 1,650 globally. It said in a release its New York office has almost doubled in size over the past decade.
“We are continuing to build an exciting future in New York,” Ropes & Gray Managing Partner David Djaha said in a statement. “Our goal is to create an environment that not only meets the needs of our clients but also provides a dynamic work environment that supports our culture of collaboration and teamwork.”
Last year, RXR modified and extended its loan for 1285 Sixth Ave., paying it down from $1.2B to $980M. The developer also pushed the debt maturity back by five years.
Ropes & Gray will be moving into most of the 550K SF space being vacated by competing law firm Paul, Weiss when it heads to a 765K SF spread at Fisher Bros.’ 1345 Sixth Ave, for which it inked a lease last year.
Ropes & Gray’s current office is also known as the News Corp. Building at 1211 Sixth Ave., owned by Ivanhoé Cambridge. Fox Corp. and News Corp. occupy the majority, 1.2M SF, of the 2M SF tower. Last year, the Rupert Murdoch companies stayed committed to the tower, renewing its leases for another 20 years.
However, the building’s $1B mortgage matures in August. Earlier this year, Fitch Ratings revised its outlook for the loan from stable to negative, and Ropes & Gray's pending departure further clouds its outlook.
A spokesperson for Ivanhoé Cambridge's parent company, CDPQ, declined to comment. An RXR spokesperson didn't immediately respond to Bisnow's request for comment.
