SL Green Announces Leasing Trifecta in NYC
- Jun 09, 2008
SL Green Realty Corp. today announced that is has completed three separate but linked leasing deals.West LB (Westdeutsche Landesbank) surrendered the entire 7th floor at 1185 Avenue of the Americas covering 27,500 square feet, which had eight years of a remaining term at below market rent. The surrender included a buyout fee paid to the landlord. RSM McGladry, an accounting and tax services firm, expanded into the space surrendered by West LB. Additionally, RSM extended its existing lease term within 1185 Avenue of the Americas by three years and eliminated an existing right to cancel in 2011 resulting in a total commitment of 164,800 square feet. Simultaneously RSM surrendered an existing lease covering 52,400 square feet at 750 Third Avenue (pictured), which had approximately five years of remaining term at below market rent. Regent Business Centers, a provider of office solutions for businesses needing full service office suites, signed a new 10-year lease covering the 52,400 square feet surrendered by RSM McGladry at 750 Third Avenue. In addition, SL Green renewed a lease with The City of New York for 20,000 square-feet on the eighth floor of 1250 Broadway.In a company statement, Steven Durels, executive vice president & director of leasing and real property for SL Green said, “This series of transactions required delicate balance in negotiating the priorities and schedules of various unrelated parties. The result unlocked significant rental value and mitigates future lease expiration exposure.” Speaking with CPN this afternoon, Durels said, “The size of each transaction is significant. However, more importantly, these leases demonstrate that there is demand for quality space in well-located buildings. The rents are equal to what we’d have received a year ago.” 1185 Avenue of the Americas is a 42-story, 1.1-million-square-foot, Class-A tower located between 46th and 47th Streets. Other units in the building are listed at $95 per square foot. In April CPN reported that a 12-year lease to News America on the 25-27 floors of the 1185 Ave. of the Americas was signed. That was a 12-year, 84,000-square-foot deal. 750 Third Avenue is an 800,000-square-foot, Class-A tower located three blocks from Grand Central Terminal. It has other units listed for $72 – $74 per square foot. CPN also reported on SL Green’s renewal of a lease to Omnicom Group covering 55,000 square feet at 220 East 42nd St. The 37-story, 1 million-square-foot tower also known as “The News Building,” was made famous in the Superman television series in the 1950’s, and the landmarked lobby featuring a rotating globe continues to be a tourist attraction.