SL Green Signs 73 KSF Manhattan Tenant
SL Green Realty Corp. has signed a 72,515-square-foot, 10-year lease with Verition Group NY Inc. at 245 Park Ave. in Manhattan. Cushman & Wakefield negotiated on behalf of the landlord, while Newmark represented the tenant.
The hedge fund is expanding its footprint in the Class A building by 34,413 square feet, relocating from the 35th floor to take all of the 14th and 15th floors. The move hikes the building’s occupancy to 92.5 percent and also increases SL Green’s office leases signed year-to-date to a tad north of 3 million square feet.
The REIT paid nearly $1.8 billion for 245 Park in 2022, according to CommercialEdge information. One year later, SL Green sold a 49.9 percent interest in the property to a U.S. affiliate of Mori Trust Co., a Tokyo-based developer and investor.
The 45-floor, 1.7 million-square-foot office tower came online in 1966. The high-rise features floorplates averaging 79,508 square feet and 68,000 square feet of retail space.
The building is currently undergoing a renovation that includes a new lobby and plazas, new storefronts, new windows and a terra cotta overclad of the Park Avenue podium facade. New amenities will include a tenant-only wellness center with a large fitness center, country club-style golf lounge and upscale cafe operated by Michelin star chef Daniel Boulud’s team.
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Other major tenants at the property include Chase, Societe Generale, Ares Commercial Real Estate and Houlihan Lakey, according to CommercialEdge. Ares recently expanded its presence in the building to roughly 307,000 square feet.
Newmark’s Bill Levitsky and John Cilmi Jr. represented Verition Group. SL Green was represented by Cushman & Wakefield’s Bruce Mosler, Harry Blair, Tara Stacom, Ron LoRusso, Justin Royce, Pierce Hance and Will Yeatman.
Quality still sells
Manhattan’s office market saw 5.3 million square feet of new leasing demand in the third quarter, which was a 15.9 percent decrease from the previous quarter, but nonetheless the second-highest quarter in the past two years, according to a report from Cushman & Wakefield.
Asking rents in Midtown amounted to $78.21, and up to $96.28 for Class A space. “Limited quality space options will likely place continued upward pressure on Class A rents,” Cushman & Wakefield reported.
In one of the quarter’s larger leasing deals, Christie’s signed a 25-year lease renewal at Tishman Speyer’s Rockefeller Center. The auction house occupies about 400,000 square feet at 20 Rockefeller Plaza.
More recently, another SL Green property was the scene of a significant office lease, as Bloomberg renewed and expanded its commitment at 919 Third Ave. The 1.5 million-square-foot tower is also in Midtown.
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