Lease Beat

CorpBanca Relocating to 885 Third Avenue

One of the largest banks in Chile, CorpBanca, has signed a 15-year lease for a 13,854-square-foot, full-floor office space at the Lipstick Building at 885 Third Avenue, The Commercial Observer has learned.

366px-Lipstick_Building,_taken_by_Arnd_Otto_DewaldThe relocation from its previous location just one block away, at 845 Third Avenue, gives the firm turn-key access to the 33rd floor tower, which features panoramic, 360-degree views and efficient floor-plates, brokers involved in the deal said.

“They are a well-respected international bank and they were attracted to the building because its iconic architecture and boutique floor plates, which gave them an opportunity for the full floor,” said Scott Klau of Newmark Grubb Knight Frank, who represented the landlord with Mark Weiss and Erik Harris, calling the views from the floor spectacular, adding that asking rents were $85 per square foot.  A NGKF team of Dan Gronich and Lawrence Zuckerman represented the tenant.

The Lipstick Building was purchased in late 2010 by a group of investors headed by IRSA, Argentina’s largest real estate firm, and the Marciano Investment Group.  A division of IRSA works with Herald Square Properties as co-asset manager for the iconic tower, which is more than 95 percent occupied.

The building’s largest tenant is international law firm, Latham & Watkins. Law firm Goulston & Storrs is among other tenants. The last available 11,000-square-foot offices, located on the 19th floor, are currently being renovated as pre-built space, designed by Gensler.

“In the three years since purchasing the Lipstick Building, we have seen an extraordinary turnaround,” said Daniel Elzstain, IRSA’s director, in a prepared statement. “From the very beginning, we embarked on a series of improvements that have attracted new and prestigious tenants, such as CorpBanca.”

Completed in 1986, the 34-story, 453-foot Class-A office tower at 885 Third Avenue was designed by Philip Johnson with John Burgee Architects. The cylindrical shape and red granite and steel façade, with the red coloration surrounding the ribbon windows, have been compared to a tube of lipstick, hence the name.

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