Silverstein Signs 2 New Leases at Manhattan Tower
Silverstein Properties has signed two new leasing agreements at 1177 Avenue of the Americas, a 47-story, 1 million-square-foot trophy tower in Midtown Manhattan’s Plaza District.
The first agreement involves the relocation and lease expansion of Faegre Drinker Biddle & Reath LLP. The law firm will move its 37,050-square-foot New York City office, currently on the building’s 37th and 38th floors, to 43,000 square feet across floors 41 through 43, according to the New York Business Journal. Faegre Drinker has been a tenant at the property since 2011.
In the second transaction, the Trustees of Columbia University, which previously occupied space at The Chrysler Building, will move its offices to 15,500 square feet at the tower’s 34th floor.
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A JLL team consisting of Vice Chairmen Greg McCavera and Michael Berg and Vice President Sofia Bruno represented Faegre Drinker. Cushman & Wakefield Executive Vice Chairman Mark Weiss and Senior Brokerage Specialist Keaton McCann acted on behalf of The Trustees of Columbia University.
Silverstein’s in-house brokerage team representing the firm included Senior Vice President Joseph Artusa, alongside Vice Presidents Keith Cody, Harlan Strader and Gordon Hough. They worked alongside another Cushman & Wakefield team led by Chairman Bruce Mosler, Vice Chair Lou D’Avanzo, Executive Vice Chairman Ethan Silverstein and Managing Director Anthony LoPresti, together with Senior Associates Peter Keran and Caroline Collins.
1177’s story
Formerly known as Americas Tower, 1177 Avenue of the Americas came online in 1992 and was renovated in 2013. Silverstein, alongside the California State Teachers Retirement System, purchased the property for $1 billion in 2007, then sold a minority stake to UBS Realty Investors in 2014. However, the partners managed to reclaim full ownership of the asset in 2021, buying out UBS’ share for $860 million.
The tower’s floorplates range from 9,900 to 33,900 square feet, with 12-foot 9-inch slab heights. The building also features a full-floor amenity space with an on-site cafe, a lounge, as well as fitness and wellness rooms, among others.
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The LEED Gold-certified property’s roster includes Kramer Levin and Practising Law Institute, but also Mill Point Capital Partners and the YMCA Retirement Fund, which expanded and extended their leases in January. Prior to its closure last year, Signature Bank was a tenant as well, occupying 62,000 square feet, according to CommercialEdge information.
The tower is close to Rockefeller Center and Bryant Park, while the Port Authority Bus Terminal, Grand Central Station and Penn Station are within walking distance. Times Square is adjacent to the tower on Seventh Avenue, while Central Park is roughly two thirds of a mile up Sixth Avenue
Leasing momentum in Midtown
According to CommercialEdge’s latest office report, Manhattan’s vacancy rate of 16.6 percent was 150 basis points below the national average as of June, while asking rents, averaging $71.34 per square foot, were more than double the mean of $31.67.
Additionally, the borough has recorded far and away the nation’s largest volume of asset sales, with $1.4 billion in trades occurring year-to-date through June.
Earlier this week, Charles Schwab & Co. renewed a 23,000-square-foot stay on the 37th floor at 1133 Avenue of the Americas, a 45-story tower owned by The Durst Organization.
And last Thursday, CBRE extended and expanded its 180,000-square-foot lease at The MetLife Building. The announcement came at the same time as the firm’s appointment as the building’s exclusive leasing agent, property and asset manager.
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