Fortress Renews, Expands Lease in Iconic Manhattan Tower
- Feb 12, 2015
Fortress Investment Group has renewed and expanded its lease at 1345 Avenue of the Americas, with Fisher Brothers and J.P. Morgan Asset Management, signing a 15-year lease to retain its global corporate headquarters.
Financial terms of the lease were not disclosed.
“Fisher Brothers is thrilled at the opportunity to extend our relationship with Fortress, a dynamic, top-tier financial firm whose AUM has more than doubled over the past five years,” Kenneth Fisher, Fisher Brothers’ partner, said in a company statement. “All of us at Fisher Brothers and 1345 Avenue of the Americas are proud to be able to accommodate and support Fortress’ continued growth.”
The new lease will become effective in January 2017 and encompasses 200,000 square feet, including the entire 23rd, 26th, 45th and 46th floors, as well as part of the 47th floor of the 50-story tower. Presently, Fortress occupies a portion of the space through a direct lease, while the remaining space, which is currently subleased, will go direct in stages starting in 2017.
Located between 54th and 55th streets, the building is a signature Midtown Manhattan office tower and offers unparalleled views of Central Park.
According to a JLL Midtown Office Report, released in February, office rents in Midtown are at its strongest levels since 2008 and being a trophy tower with a view are hot. In fact, the report shows that in the fall of 2014, the area had recorded 99 transactions with rents starting at $80 or greater, up from 86 in 2013 and 51 in 2012. More than 23 properties now post direct asking rents greater than $100 per square foot, compared to 21 in spring 2014 and 14 in spring 2013. Within this category, an even smaller set of buildings with Central Park views commands rents averaging around $145 square foot.
The 50-story, two-million-square-foot tower was designed by Emery Roth & Sons, and is owned by Fisher Brothers and an institutional investor advised by J.P. Morgan Asset Management. The building includes an on-site garage, state-of-the-art security, and close proximity to Fortune 500 neighbors with some of the city’s finest hotels and restaurants within walking distance. It’s also adjacent to serene Fisher Park.
Overall, Fortress maintains 15 offices worldwide and has $66 billion in assets under management
Fortress was represented by Howard Grufferman, Colliers International’s vice chairman, in the lease agreement. Fisher Brothers was represented in-house by Marc Packman.