A division of Lennar Corporation has signed a 10-year, 17,852-square-foot lease at 600 Madison Avenue in the Plaza District.
Rialto Capital Management, Lennar’s real estate investment arm, focused on distressed and value-add properties, took the entire 12th floor at Ruben Companies’ 26-story, 327,960-square-foot tower, The Real Deal reported today.
Following a six-month grace period with free rent, Rialto will pay rents starting in the high $60s, according to the report.
The relocation takes the company from its current space at Shorenstein Realty Services’ 850 Third Avenue, Jones Lang LaSalle’s Matt Polhemus, who handles leasing at that building along with colleagues Matthew Astrachan and Mitchell Konsker, told TRD.
CBRE’s Evan Haskell handles leasing at 600 Madison Avenue along with Derrick Ades and Howard Fiddle.
The brokers did not immediately return The Commercial Observer’s calls seeking comment.
Earlier this month, investors affiliated with Ruben Companies purchased the ground fee and claims for back rent at the building for $210 million from trustees of the Wallace estate, TRD reported, noting that Ruben had held the long-term leasehold at the building since the 1970s.
Lennar was recently ranked South Florida’s top residential developer, with 1,267 closings in the region in the fiscal year ending March 2013, TRD noted.
Located on the corner of 58th Street and Madison Avenue in the Plaza District, the building is home to a range of hedge funds and other boutique financial firms, in addition to the offices of retailers UGG, Shanghai Tang and J.M. Weston.