JLL Completes 96,350-SF Deal for Perry Ellis in 1120 Avenue of the Americas
- Aug 22, 2012
By Gail Kalinoski, Contributing Editor
Perry Ellis International is consolidating two office locations in midtown Manhattan and leasing more than 96,000 square feet of Class A space at 1120 Avenue of the Americas for its menswear operations in a long-term deal arranged by Jones Lang LaSalle.
Nearly 60,000 square feet of the space will be subleased from Huron Consulting Group, which will eventually become a direct lease. The remainder of the space at the site, also known as the Hippodrome Building, is a long-term, direct lease with building owner, Edison Properties L.L.C. The international apparel and accessories design firm is taking the entire eighth and 14th floors and part of the seventh floor.
“Perry Ellis was attracted to the Hippodrome Building by the unique nature of the eighth floor. The floor offers a double-height ceiling with terrific lights and an open feel,” said Robert Martin, a JLL vice chairman who arranged the deal with his colleagues, Vice Chairman Matthew Astrachan; Executive Managing Director Alexander Chudnoff and Brad Lane, an associate.
Huron Consulting was also represented by Jones Lang LaSalle. Lisa Kiell, managing director, and Douglas Neye, senior vice president, handled that firm’s interests. Edison Properties had Michael Burgio, John Cefaly and Gus Field, all vice chairmen with Cushman & Wakefield, as its representatives.
Originally the site of the Hippodrome Theatre from 1905 to 1939, the office building was erected in 1954. Located between 43rd and 44th streets on 6th Avenue, the 21-story building was renovated about six years ago. The state-of-the art building earned silver LEED certification last year.
“This transaction is ideal for Perry Ellis, as it allows the designer to consolidate its menswear operations into one high-end building” said Astrachan. “The new space allows Perry Ellis to remain near Bryant Park, and 1120 Avenue of the Americas is located in close proximity to both of its other existing locations.”
Martin and Astrachan told Commercial Property Executive that Perry Ellis is gaining a “modest increase” in square footage by consolidating into one space from its previous offices for the menswear division at 1114 Avenue of the Americas and 42 West 39th St.
Tenants at 1120 Avenue of the Americas include American Express Publishing, Macy’s Merchandising Group, and BBC America. JLL represented both BBC America and Huron several years ago when they leased space at the building, according to Martin and Astrachan.
Cushman & Wakefield noted in its Q2 Marketbeat Office Snapshot report that rents are continuing to move steadily higher in Manhattan, with Midtown asking rents up about 5 percent from a year ago. Class A office rents in the Times Square south submarket, where 1120 Avenue of the Americas is located, are in the $70s range. CBRE stated in its August 2012 Manhattan Marketview Snapshots report there was 1.22 million square feet of leasing activity in July for Midtown, the second month of above-average leasing for a total of 6.93 million square feet leased so far this year. But it’s nearly 4 million square feet less than last year at the same time. Cushman & Wakefield expects there will be only “moderate levels of leasing and flat to slightly lower vacancy with rents tending to slowly move higher” for the remainder of this year.